RAP vs Tiered Standard: Choosing a Student Loan Plan in 2026
For federal student loans first disbursed on or after July 1, 2026, borrowers choose between the income-based Repayment Assistance Plan (RAP) and a fixed-payment Tiered Standard plan. Estimate yours with our RAP student loan calculator.
Key takeaways
- RAP payments follow your income, from a $10 minimum up to 10% of AGI.
- Tiered Standard has a fixed payment and a set payoff date.
- A lower payment can mean more interest over time.
- Confirm your own figures in the Loan Simulator on studentaid.gov.
How each plan works
- RAP: a payment between 1% and 10% of adjusted gross income, reduced by $50 per dependent, with a $10 minimum.
- Tiered Standard: a fixed payment over 10, 15, 20 or 25 years depending on the amount owed.
Example
With $52,000 of AGI, no dependents and $38,000 owed at 6.52%, the estimated RAP payment is about $216.67 a month, against $331.44 on the Tiered Standard plan over 15 years.
Choosing
- If your income is tight or uncertain, RAP’s lower payment may matter most.
- If you can afford the standard payment, you get a fixed payoff date.
- Confirm your figures in the Loan Simulator on studentaid.gov; the rules are set by the Department of Education and can change.
See also the loan payoff calculator to see how extra payments shorten a loan.
Frequently asked questions
Q. What is RAP?
The Repayment Assistance Plan is an income-based plan for federal student loans first disbursed on or after July 1, 2026.
Q. How is the Tiered Standard term decided?
By the balance: roughly 10 years under $25,000, then 15, 20 and 25 years as the amount owed rises.
Q. Where do I verify the numbers?
Use the Loan Simulator at studentaid.gov or ask your servicer.
