RAPpath

Plan comparison

RAP vs PAYE: Which Should You Choose?

PAYE caps payments at 10% of discretionary income but closes to new enrollment on July 1, 2027. RAP charges a bracket percentage of your full AGI and is the long-term plan. Here is how they compare.

From line 11 of your IRS Form 1040.

−$50/mo each

For IBR compare

Estimated RAP payment
$—
RAP
$—
IBR
$—

RAP vs PAYE by income

Single borrower, no dependents, family size 1:

AGIRAP/moPAYE/mo
$50,000 $167 $221
$75,000 $438 $429
$100,000 $750 $638

Key differences

RAPPAYE
StatusAvailable July 1, 2026Closes to new enrollment July 1, 2027
Based onFull AGIDiscretionary income (150% FPL shelter)
Rate1%–10% by bracket10% of discretionary
Payment capNoneCapped at the 10-yr Standard amount
ForgivenessAfter 30 yearsAfter 20 years

Frequently asked questions

Can I still enroll in PAYE?

For now, yes — but the Department of Education will not accept new PAYE enrollments on or after July 1, 2027. After that, the income-driven choices are RAP and IBR. If you want PAYE, you must enroll before that cutoff.

Is RAP or PAYE cheaper?

PAYE charges 10% of discretionary income (AGI minus 150% of the poverty line), so it shelters income that RAP taxes directly. For lower and middle incomes, PAYE is often cheaper than RAP; the gap narrows or flips at higher incomes. Compare your exact numbers in the calculator above.

What happens to my PAYE plan after 2027?

If you are already enrolled in PAYE, you can generally stay on it for now, but PAYE, ICR, and SAVE are being phased out — by July 2028 the only income-driven plans will be RAP and IBR. Watch for servicer notices about transitioning your plan.

Next: RAP vs IBR · RAP vs SAVE · RAP payment by income