RAP vs IBR Student Loan Comparison Engine
Compare monthly obligations, interest subsidies, and forgiveness schedules between RAP and IBR.
Federal Student Loan Repayment & RAP Comparison Calculator
Deterministic Title IV repayment model comparing RAP, IBR, PAYE, ICR, and Tiered Standard.
Borrower Inputs
Aggregate outstanding principal balance across Direct Subsidized, Unsubsidized, and PLUS loans.
Line 11 on IRS Form 1040 representing annual household taxable earnings.
Statutory interest rate applicable to Title IV Direct Loans.
Borrower plus spouse and qualifying legal dependents.
HHS poverty baselines vary between Contiguous 48, Alaska, and Hawaii.
Monthly Repayment Obligations
Key Statutory Rule Summary (Title IV)
Under Title IV 34 CFR Part 685, the Repayment Assistance Plan (RAP) establishes monthly obligations at ten percent of discretionary income exceeding 225 percent of the HHS Poverty Guideline. RAP automatically waives all unpaid monthly interest through statutory subsidies, preventing negative amortization across undergraduate and graduate balances.
Statutory Divergence: RAP 225% Exemption vs IBR 150% Threshold
The primary divergence between the 2026 Repayment Assistance Plan (RAP) and Income-Based Repayment (IBR) lies in the discretionary income exemption multiplier and interest waiver mechanics. RAP elevates the protected baseline to 225 percent of the HHS Poverty Guideline. For a single borrower in the contiguous states, this shields thirty-five thousand two hundred twelve dollars of adjusted gross income before any payment is assessed.
In contrast, IBR shields only 150 percent of the guideline (twenty-three thousand four hundred seventy-five dollars). However, IBR preserves a statutory payment cap under Higher Education Act Section 493C equal to the 10-year Standard Repayment schedule, whereas RAP payments scale with uncapped earnings.
Crucially, RAP subsidizes one hundred percent of unpaid monthly interest whenever the borrower obligation falls below monthly interest accrual. This eliminates negative amortization entirely, preserving initial principal balances against ballooning debt spirals.
Statutory Authority & Provenance Citations
- Dataset 1: US Department of Education Title IV Repayment Regulations (34 CFR Part 685)
- Dataset 2: US Department of Health and Human Services Annual Poverty Guidelines (42 U.S.C. 9902(2))
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