RAPpath RAP guide
RAP for High Earners
Above $100,000, RAP charges 10% of your full AGI with no income shelter — so high earners often pay more under RAP than under IBR or by refinancing. Here is where it stops being the cheapest option.
Where RAP costs more than IBR
Single borrower, no dependents, family size 1:
| AGI | RAP/mo | New IBR/mo | RAP extra |
|---|---|---|---|
| $120,000 | $1,000 | $804 | +$196 |
| $150,000 | $1,250 | $1,054 | +$196 |
| $200,000 | $1,667 | $1,471 | +$196 |
Your options as a high earner
- Compare IBR: New IBR shelters 150% of the poverty line, so it usually beats RAP at high income.
- Consider refinancing: a lower private rate can win if you will not use forgiveness — see RAP vs refinancing.
- Stay on RAP for PSLF: if you work in public service, RAP still counts toward PSLF and forgiveness is tax-free.
- Lower your AGI: max pre-tax retirement and HSA contributions to drop a bracket.
Frequently asked questions
Is RAP a good plan for high-income borrowers?
Often not the cheapest. Above $100,000 of AGI, RAP charges a flat 10% of your full income with no poverty-line shelter, so high earners can pay more under RAP than under IBR (10% of discretionary income) or by refinancing to a lower rate. RAP still helps if you are pursuing PSLF or want the interest waiver.
Should high earners refinance instead of using RAP?
If you have strong credit, a stable high income, no plans to use forgiveness, and want to pay the loan off fast, refinancing to a lower private rate can beat RAP — but you permanently give up PSLF, the interest waiver, and federal protections. Weigh the rate savings against what you lose.
Does RAP ever beat IBR at high income?
It can when you have many dependents (each cuts $50/month off RAP) or when your discretionary income is high relative to your total AGI. For most single high earners, though, New IBR or refinancing tends to be cheaper. Run both above.
Next: RAP vs IBR · RAP payment by income
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