Which repayment plan should I choose

First, rule out the easy cases

• New loan (disbursed on/after July 1, 2026)? → You can only use RAP or Standard. IBR isn't offered. Choose RAP if you can't comfortably afford Standard.
• Want to pay off fast and can afford it? → Standard (10-year) is usually the cheapest total. Income-driven plans lower monthly payments but cost more interest overall.
• On SAVE and forced to switch? → You choose IBR or RAP (or Standard). Don't let the servicer auto-enroll you in RAP without comparing first.

Then, your decision tree (IBR vs RAP)

Q1 — Do you need a $0 or near-$0 payment right now?

• Yes → lean IBR. IBR can be $0 (income below 150% of the poverty line) and counts toward forgiveness. RAP never goes below $10.
• No → go to Q2.

Q2 — Are you a large household or low earner?

• Yes → compare carefully. IBR is often lower this month. IBR's 150%-of-poverty deduction scales with family size; RAP only gives a flat $50/dependent. A family of 4 under $49,500 AGI (150% of the 2026 HHS poverty guideline) gets a $0 IBR payment but a real RAP payment.
• No → go to Q3.

Q3 — Do you want the balance frozen & shrunk, or forgiven sooner?

• Freeze the balance → RAP. It waives unpaid interest (no growth). If an on-time payment reduces principal by less than $50, ED matches the shortfall up to the lesser of $50 or that payment.
• Forgive sooner → IBR. 20–25 years vs RAP's 30. You no longer need a partial financial hardship to enroll; the payment is still capped at the 10-year standard amount.

Every rule has exceptions (e.g., PSLF borrowers, grad loans). This tree is a starting point, not a substitute for running your real numbers.

RAP vs IBR vs Standard at a glance

How this guide was built

Written by the RAP vs IBR editorial team from 34 CFR 685.209, OBBBA (P.L. 119-21) §80503, the FSA DCL of July 18, 2025 (IBR hardship gate), and Department of Education transition guidance. Last updated: September 29, 2026. Disclaimer: informational only — not legal, tax, or financial advice.