5-Plan Comparison Engine
Compare RAP, ICR, IBR, PAYE and Standard repayment side-by-side with NPV, tax bomb and yearly projection.
Comparing the Five Repayment Plans
Federal borrowers can generally choose among RAP (the new 2026 income-driven plan), ICR, IBR, PAYE, and the Standard 10-year plan. This tool models all five side by side so you can compare monthly payments, total paid, and forgiveness outcomes using your own numbers.
What each plan does
- RAP (Repayment Assistance Plan): the new IDR plan for 2026, replacing SAVE; payment based on adjusted gross income with a $10/month floor for very low earners and a 30-year forgiveness path.
- ICR (Income-Contingent Repayment): payment is the lesser of 20% of discretionary income or the amount on a 12-year fixed plan; 25-year forgiveness. Has new-borrower eligibility limits.
- IBR (Income-Based Repayment): payment is 10% or 15% of discretionary income depending on when you borrowed; 20- or 25-year forgiveness.
- PAYE (Pay As You Earn): payment is 10% of discretionary income; 20-year forgiveness; limited to borrowers meeting new-borrower dates.
- Standard: fixed level payments over 10 years; no forgiveness, but often the lowest total interest if you can afford it.
Understanding NPV
Net Present Value (NPV) discounts future payments to today's dollars using a discount rate you set (a common proxy is a safe investment return or inflation). Plans with lower NPV cost less in today's money. NPV matters because $100 paid in 20 years is worth less than $100 paid today—so a plan with forgiveness may have a lower NPV despite a higher nominal total.
The "tax bomb"
Under income-driven plans, any balance forgiven after 20–30 years can be treated as taxable income by the IRS (federal treatment has changed over time—confirm current law). This tool estimates that potential tax using your state and filing status so the comparison is realistic, not just the monthly payment.
SAVE to RAP transition
Borrowers formerly on SAVE must move to RAP or another eligible plan. The transition changes how interest accrues and how payments are calculated, so re-run this comparison after enrolling to see your new trajectory.
Which plan should you pick?
If you want the lowest monthly payment and may pursue forgiveness, compare the IDR options using your income. If you have stable high income and no forgiveness plans, Standard may cost least overall. Public-service workers should pick the IDR plan with the lowest payment that still qualifies for PSLF.
Worked example
Illustrative: A borrower with $40,000 in loans and $55,000 income may see RAP payments well below Standard, with a higher lifetime cost but potential 30-year forgiveness—offset by a future tax bill. The numbers depend on your exact situation; model them here.
Frequently Asked Questions
Lower payments stretch the loan longer, so more interest accrues. Forgiveness can reverse that, but only if you complete the forgiveness term and account for any tax.
RAP, IBR, PAYE, ICR, and 10-year Standard all produce PSLF-qualifying payments with eligible employment. Pick the lowest-payment qualifying plan while pursuing 120 payments.
There is no single right answer. Many use a risk-free rate (e.g., a Treasury yield) or their expected investment return. The tool lets you adjust it to see how sensitive the ranking is.
Federal tax treatment of forgiven balances has changed in recent years. Confirm the current rule with the IRS and your state, since states differ.
Yes, generally once per year or after an income change. Recertify on time to avoid a payment jump to the Standard amount.
Sources: Federal Student Aid, IRS.gov. Educational use only.
Choosing a Plan by Your Situation
High income, no forgiveness goal
If you earn well above your loan balance and don't need forgiveness, the Standard 10-year plan usually costs the least in total interest. An IDR plan would lower payments now but cost more over time and could trigger a tax bill on forgiven debt.
Lower income or large balance
Borrowers whose balance exceeds what they can repay from income benefit most from IDR plans (RAP, IBR, PAYE, ICR). The payment is tied to income, and any leftover balance is forgiven after 20–30 years—though potentially taxed. This is where NPV and the tax-bomb estimate matter most.
Public service workers
If you qualify for PSLF, pick the IDR plan with the lowest payment, because after 120 qualifying payments the balance is forgiven tax-free at the federal level. Paying more than required does not speed up PSLF and usually wastes money.
Marriage and tax filing
Married borrowers: some IDR plans count spousal income only if you file jointly. Filing separately can lower your payment but may raise your joint tax bill. Model both scenarios—the cheaper student-loan payment is not always the cheaper overall outcome.
New borrowers and plan eligibility
PAYE and ICR carry "new borrower" dates set by ED; borrowers who took new loans after those dates may be steered toward RAP or IBR. Always check current eligibility on studentaid.gov.
Interest-rate environment
When market rates are high, locking a fixed federal rate looks attractive; when low, refinancing private loans may help. The comparison tool isolates the payment and lifetime-cost differences so you can decide on numbers, not guesses.
More Comparison Questions
RAP ties payments to income and offers 30-year forgiveness, which can beat Standard for borrowers with high balances relative to income—especially if they pursue PSLF alongside it.
No. Federal tax treatment of forgiven IDR balances has changed and may change again. The tool's estimate is a planning assumption, not a guarantee—verify with the IRS.
Yes. RAP payments qualify for PSLF, so public-service borrowers can use RAP to minimize payments while progressing to 120.
Only if you forfeit federal benefits intentionally and won't need IDR, PSLF, or deferment. For most pursuing forgiveness, keeping federal is smarter.
Recertification and Common Mistakes
Keep your income certification current
IDR payments are recalculated from your most recent tax data. If you miss the annual recertification, your payment can jump to the Standard amount and your forgiveness clock can stall. Mark the date and recertify on time every year.
Mistakes that cost borrowers
- Staying on Standard when an IDR plan would qualify them for forgiveness they'll never use the lower payment to reach.
- Ignoring the tax bomb and being surprised by a future bill on forgiven debt.
- Refinancing federal loans and losing PSLF eligibility by accident.
- Comparing only the first-year payment instead of lifetime NPV.
Use this tool the right way
Enter your real loan balance, income, family size, and state. Then read the NPV column and the tax-bomb estimate together—not just the monthly payment—to see which plan truly costs least for your situation.
Quick Glossary
- Discretionary income
- The amount of your income above a set fraction of the federal poverty guideline for your family size; it drives IDR payments.
- AGI (Adjusted Gross Income)
- Your income after certain tax deductions, from your tax return; RAP uses this directly.
- NPV (Net Present Value)
- The discounted, today's-dollar cost of all future payments; lower is cheaper.
- Tax bomb
- The potential income tax on a balance forgiven under an IDR plan after 20–30 years.
- Forgiveness term
- The number of years of qualifying payments before any remaining balance is forgiven (20–30 for IDR).
When to Revisit Your Plan
Re-run this comparison whenever your life changes: a new job or raise, marriage or a new child, or a year of unusually low income. Each event shifts your IDR payment and can change which plan is cheapest. Set a yearly reminder to recertify and re-compare so you never overpay by default.
Related Tools and Reading
Pair this comparison with our Amortization Calculator to see the exact payment breakdown, and the PSLF Calculator if you work in public service. For plain-language explainers, see the Student Loan Blog, including the IDR comparison guide and the refinance pros and cons article.
⚖️ 5-Plan Repayment Comparison
Compare RAP, ICR, IBR, PAYE, and Standard 10-Year side by side. Includes the 2026 RAP plan and ICR for Parent PLUS borrowers.
| RAP | ICR | IBR | PAYE | Standard 10yr | |
|---|---|---|---|---|---|
| Initial Monthly | — | — | — | — | — |
| Total Paid | — | — | — | — | — |
| Forgiven | — | — | — | — | — |
| NPV (Today's $) | — | — | — | — | — |
| Est. Tax Bomb | — | — | — | — | — |
📊 View Year-by-Year Projection Detail
Select a plan to see yearly breakdown:
⏸️ SAVE Forbearance Interest Calculator (2025–2026)
💰 Detailed Tax Bomb Breakdown
Tax Note: Non-PSLF loan forgiveness may be taxable as income (federal + state). PSLF forgiveness is tax-free. Insolvency may reduce tax liability under IRC §108. Consult a tax professional.