RAP vs. PAYE Payment Estimator
Enter your income to see an estimated monthly payment under the new Repayment Assistance Plan (RAP) compared with PAYE. SAVE is included for reference only — it's currently suspended pending litigation.
Estimates only, based on published 2026 federal formulas. This isn't tax, legal, or loan servicing advice — confirm your exact payment with your loan servicer or the Federal Student Aid Loan Simulator.
RAP vs. SAVE vs. PAYE: Which Student Loan Repayment Plan Saves You the Most in 2026?
If you have federal student loans, the ground just shifted under your repayment plan. A new option called the Repayment Assistance Plan (RAP) became available on July 1, 2026, and the plans many borrowers have relied on for years — SAVE, PAYE, and ICR — are being phased out for existing borrowers by July 1, 2028.
That gives you a window to figure out which plan actually costs you less before you’re forced to switch. Here’s what changed, how the plans compare, and how to run your own numbers.
What’s Changing, and When
- July 1, 2026 — RAP becomes available to borrowers.
- Loans disbursed on or after July 1, 2026 — new Income-Driven Repayment (IDR) plan options are eliminated for these loans, meaning newer borrowers have fewer plan choices from the start.
- By July 1, 2028 — SAVE, PAYE, and ICR are phased out entirely for existing borrowers, who will need to transition to RAP or a revised Standard Repayment Plan.
If you’re currently on SAVE, PAYE, or ICR, nothing forces you to move today — but the clock is running, and waiting until 2028 to figure out your options isn’t a great plan.
RAP vs. SAVE vs. PAYE: The Basics
| RAP | SAVE | PAYE | |
|---|---|---|---|
| Status | New, available now | Being phased out by 2028 | Being phased out by 2028 |
| Who it’s for | New and existing borrowers going forward | Existing borrowers only, temporarily | Existing borrowers only, temporarily |
| Payment basis | Income-based formula unique to RAP | % of discretionary income | % of discretionary income |
| Family size definition | Updated 2026 federal poverty line rules | Prior rules | Prior rules |
| Long-term availability | The plan being consolidated toward | Ending | Ending |
The details of each formula matter more than a table can capture — the real value is in comparing what your numbers look like under each plan, not just the plan structure in the abstract.
A Worked Example
Consider a borrower who finishes a training program mid-year: they earn a lower income for the first half of the year and a significantly higher income for the second half after a promotion or new role. Averaged out, their annual income lands in a middle range.
Run that same income profile through RAP, PAYE, and IBR side by side, and the monthly payment estimates diverge — sometimes by a meaningful margin. That’s the whole point of comparing plans individually rather than assuming one is automatically best. A generic “average borrower” comparison won’t tell you what your actual monthly payment looks like — you need to plug in your own income and loan balance.
That’s exactly what our calculator below is for.
[Embed: Student Loan Repayment Plan Calculator]
Enter your loan balance, income, and family size to see estimated monthly payments across plans, side by side.
What to Do Before 2028
- Log into your Federal Student Aid account at StudentAid.gov and confirm your loan types, balances, and current repayment plan.
- Run your numbers through the calculator above under RAP and your current plan to see which is cheaper for your situation.
- Watch your servicer’s communications closely — the transition won’t necessarily be automatic, and missing a notice could put you on a plan you didn’t choose.
- Compare refinancing as a separate option if switching to a federal IDR plan doesn’t improve your payment — private refinancing can sometimes beat federal plans depending on your credit and income, though you’d give up federal protections like forgiveness eligibility.
Related Tools
- Amortization Calculator — see how extra payments toward principal shrink your total interest, whether on student loans or any other installment debt.
- Loan Payoff Calculator — estimate payoff timelines for standard repayment.
- Savings Goal Calculator
- Self-Employment Tax Calculator
- Student Loan Calculator
This article is for general informational purposes and isn’t a substitute for guidance from your loan servicer or a financial advisor about your specific situation.
A: The Repayment Assistance Plan (RAP) is a new federal income-driven repayment option introduced on July 1, 2026. It utilizes an updated income-based formula designed to streamline federal loan repayment into a single consolidated system.
A: If you are an existing borrower already enrolled in SAVE, PAYE, or ICR, you can temporarily remain on your plan. However, federal guidelines state these plans will be completely phased out by July 1, 2028, at which point borrowers must transition to RAP or a Standard Repayment Plan.
A: There is no one-size-fits-all answer. Because RAP, SAVE, and PAYE calculate discretionary income and family sizes differently, the cheapest plan depends entirely on your specific income timeline, family size, and total loan balance. Utilizing a side-by-side calculator is the best way to determine your lowest monthly payment.