Repayment Assistance Plan (RAP) vs. IBR, PAYE, and SAVE

Millions of federal student loan borrowers are entering a new repayment era. After years of uncertainty (payment pauses, injunctions, administrative forbearances, and changing policy) the United States is preparing to consolidate repayment options, ending multiple plans (including SAVE, PAYE, and ICR) and replacing them with the Repayment Assistance Plan, or RAP.

The challenge is that many borrowers are still fixated on their old payments from 2022 or 2023 and are concerned about what the cost will be in 2025 or 2026.

During SAVE’s administrative forbearance, payments were $0 and before that , they were based on older income data from as early as 2019. That anchoring has left many borrowers with expectations that no longer match current options. Interest has resumed, SAVE is no longer accepting new enrollees, and for new borrowers in 2026, RAP will be the only income-based option.

RAP has many perks, but the transition isn’t simple. Understanding how RAP compares with SAVE, PAYE, and IBR can help borrowers plan for the next several years.