RAP vs IBR vs Tiered Standard: Compare the Plans
Guides · Updated October 17, 2026 · 3 min read
Educational information only. Not financial, tax, or legal advice. We are not the U.S. Department of Education or a loan servicer. Help with federal loans is free at StudentAid.gov. Never pay a company to apply for a repayment plan. Last checked against the listed official sources: October 17, 2026. Examples use made-up numbers.
Short answer: Which plan fits depends on your loans' disbursement dates, your income, and your goals. We can't tell you which is better. Here is how the official sources describe each plan, so you can run the numbers in the Loan Simulator or in this site's payment comparator (RAP and the fixed plans only; IBR is not calculated here).
| RAP | IBR | Tiered Standard | |
|---|---|---|---|
| Type | Income-driven | Income-driven | Fixed payment |
| Who | Direct Loans disbursed at any time; FFEL and Perkins after consolidation | Direct and FFEL loans disbursed before July 1, 2026 | Required fixed plan for loans disbursed on or after July 1, 2026 |
| Payment | 1–10% of AGI, divided by 12, minus $50 per dependent, minimum $10 | 15% of discretionary income (10% for new borrowers), capped at the 10-year Standard payment | Fixed; minimum $50 |
| Length | 30 years | 25 years (20 for new borrowers) | 10, 15, 20, or 25 years by balance |
| Counts for PSLF | Yes, for on-time payments, per the Education Department | Yes | No, per Federal Student Aid |
| Unpaid interest | Waived if payments are on time; principal match up to $50 | Not described in the sources we read | Not applicable |
"New borrower" for IBR means your first loan was made on or after July 1, 2014, or you had no loans when you took a new one on or after that date (Federal Student Aid).
Tiered Standard lengths
- Balance under $25,000: 10 years
- $25,000 to $49,999: 15 years
- $50,000 to $99,999: 20 years
- $100,000 or more: 25 years
Illustration (made-up 6% interest, our own amortization math): $40,000 over 15 years is about $337.54 a month; $18,000 over 10 years is about $199.84. Real rates vary by loan. The comparator uses the same formula and applies the $50 minimum when the formula payment is lower.
Points to weigh (not advice)
- A lower payment over a longer period can mean more total interest and a later discharge timeline (Federal Student Aid).
- If you pursue PSLF, Tiered Standard does not qualify; income-driven plans do.
- Loans from before July 1, 2026 may have both RAP and IBR as options; mixed loans can have different eligibility.
- PAYE and ICR end no later than July 1, 2028.
See also RAP explained and what to do after SAVE.
FAQ
Can I switch later?
Federal Student Aid describes applying for plans through StudentAid.gov. We did not verify switching limits.
Is IBR going away?
The fact sheet says existing income-contingent plans sunset on July 1, 2028. Federal Student Aid says only PAYE and ICR end no later than that date and lists IBR as available. We did not find a sunset date for IBR. Confirm on StudentAid.gov.
What we could not verify
These points were not settled in the sources we read. Treat them as open.
- IBR discretionary-income math, which depends on the poverty guideline, is not worked on this page.
- Whether IBR remains past July 1, 2028.
- Which plan costs less for you.
Sources
- Federal Student Aid, SAVE Plan Borrowers: FAQs About Choosing a Different Repayment Plan (published October 2026). Read October 17, 2026.
- Federal Student Aid, Top FAQs About Income-Driven Repayment Plans. Read October 17, 2026.
- U.S. Department of Education, RISE final rule fact sheet. Read October 17, 2026.
- eCFR, 34 CFR 685.209, Income-driven repayment plans. Read October 17, 2026.