Compare 2026 US federal student loan repayment options following the termination of the SAVE plan. Evaluate RAP, PSLF, IBR, and Standard plans.
Adjust the variables below to simulate outcomes, compare rates, and see real-time projections.
A direct comparison of features, rules, limits, and eligibility requirements.
| Feature / Detail | New 10% IDR / RAP (Income-Driven) | PSLF Track (via Legacy IBR) |
|---|---|---|
Monthly Payment Formula | 1% to 10% of AGI sliding scale by $10k brackets; $10/mo minimum floor | 10% discretionary income above 150% FPL, capped at 10-yr Standard (via Legacy IBR) |
Forgiveness Timeline | 30 Years (360 Qualifying Monthly Payments) | 10 Years (120 Qualifying Payments for PSLF) |
Taxability of Forgiveness | Forgiven balance treated as taxable income in year of cancellation | 100% Tax-Free Federal & State under PSLF statute (IRC 108(f)(1)) |
Employment Requirement | Any employer type: private sector, self-employed, or unemployed | Full-time qualifying public service (govt, 501(c)(3) non-profit, AmeriCorps, military) |
Parent PLUS Eligibility | Ineligible for RAP; Parent PLUS borrowers restricted to ICR or Standard plans | Previously eligible via double-consolidation into ICR/IBR (loophole closed July 1, 2025) |
$0 Payment Availability | Not available: minimum $10/month floor regardless of income | Available when AGI ≤ 150% of FPL ($23,940 for single person in 2026) |
Dependent Deduction | $50/month per dependent subtracted from calculated payment | None: dependent status only affects FPL table lookup |
Interest Subsidy | Full: unpaid monthly interest waived for all loan types (no negative amortization) | Partial: interest subsidy on Subsidized loans only, first 3 years of repayment |
Payment Cap for High Earners | No cap: high earners pay up to 10% of full AGI with no ceiling | Capped at 10-year Standard Repayment amount (never exceeds standard payment) |
Principal Matching Payment | Up to $50/month when borrower pays less than $50 in principal | None |
Analyze the advantages and drawbacks of each financial product before making a decision.
Meet Dana: single, $65,000 AGI, $45,000 in Direct Loans, one of the 7 million borrowers leaving SAVE. Under SAVE she paid about $121 a month, 5% of income above 225% of the poverty line. That number is gone.
Her four real options now: RAP at roughly $325 a month (6% of her full AGI, divided by twelve), legacy IBR at about $342 (10% of income above 150% FPL), or the 10-year Standard plan at roughly $511. Doing nothing is the worst option: after her 90-day window closes, her servicer places her on Standard automatically, at the highest payment with no forgiveness track.
The lesson from Dana's numbers: the cheapest living plan for her is RAP by a whisker over IBR, but the ranking flips with income and family size. Run your own numbers in the simulator above before your notice arrives, not after.
RAP calculates payments unlike any previous IDR plan: a flat percentage of your entire AGI, stepping up 1 point per $10,000 income bracket, 1% up to $20,000, 5% in the fifties, 10% above $100,000. No poverty-line deduction, no discretionary-income math.
The staircase has sharp edges. Earn $60,000 and you pay 5% ($250/month); a $1,000 raise to $61,000 bumps the whole AGI into the 6% tier ($305/month): a $660-a-year payment increase from a $1,000 raise. Timing bonuses and Roth conversions around bracket edges suddenly matters for student loans, not just taxes.
Three softeners are built in: $50 per month per dependent comes off the payment, unpaid interest is fully waived each month (your balance never grows), and the government adds up to $50 monthly toward principal when your payment covers less than that. The floor is $10 a month: the $0 payment died with SAVE.
If you work full-time for a government agency or 501(c)(3), the comparison ends quickly: PSLF cancels the entire remaining balance after 120 qualifying payments, tax-free by statute. Every payment you already made under SAVE while publicly employed still counts. Nothing in the private-sector column competes with that.
Everyone else is on RAP's 30-year road, 360 payments before forgiveness, and the canceled balance is treated as taxable income that year. A $40,000 balance forgiven in 2056 could add roughly $8,000-$10,000 to that year's tax bill at today's rates. Plan for it or pay the balance off early; payments simply stop the month you hit zero.
Watch the calendar, because doors are closing in order: new loans or consolidations from July 1, 2026 lock all your federal loans into RAP or Standard only; PAYE and ICR sunset June 30, 2028; legacy IBR is the one older plan that survives. If keeping IBR access matters to you, do not consolidate casually.
For the 7M+ borrowers transitioning off the terminated SAVE plan, the decision hinges on your employer. If you work full-time for a government agency, 501(c)(3) non-profit, or qualifying public service organization, PSLF delivers 100% tax-free loan cancellation in 10 years (120 payments): the single best outcome available. Pair PSLF with Legacy IBR or RAP for your monthly payments. For private-sector and self-employed borrowers, RAP is the primary IDR option launched July 1, 2026, offering full interest waiver, principal matching for low-income borrowers, and a $50/month per-dependent deduction. If your monthly payment under RAP is high enough to pay off your balance before 30 years, payments automatically cease once the balance reaches zero.
Private-sector employees, freelancers, self-employed workers, and borrowers not in public service who need the interest subsidy and dependent deductions.
Teachers, nurses, government employees (federal/state/local), military personnel, AmeriCorps alumni, and 501(c)(3) non-profit workers seeking 10-year tax-free forgiveness.
The rules and figures on this page are researched from official primary sources:
