2026 Student Loan Pivot Calculator
The Repayment Assistance Plan (RAP) is the new federal student loan repayment plan replacing SAVE after the OBBBA eliminated income-driven plans in 2026. RAP payments equal 10% of AGI ÷ 12 (minimum $10/month). Forgiveness occurs after 30 years — but the forgiven balance is taxable. This calculator compares RAP vs. Standard vs. Legacy IDR so you can switch before the July 1, 2026 deadline.
How RAP Monthly Payments Are Calculated
The Repayment Assistance Plan uses a simple percentage-of-income formula to set monthly payments, with a minimum floor and no interest subsidy — meaning your balance can grow even while making payments.
| AGI | RAP Monthly Payment | Standard 10-Year |
|---|---|---|
| $30,000 | $250 | ~$300–$500 |
| $60,000 | $500 | ~$600–$1,100 |
| $100,000 | $833 | ~$1,000–$1,800 |
Unlike SAVE, RAP provides no interest subsidy. If your monthly payment is $250 but your monthly interest accrual is $350, your balance grows by $100/month. After 30 years, the entire forgiven balance — including accrued interest — is taxable income. Plan for the tax bomb accordingly.
⚠️ Expert Pro-Tip
Act before July 1 — or you’ll be auto-moved to Standard repayment. Any borrower still on SAVE after July 1, 2026 is automatically switched to the Standard 10-year plan by the Department of Education. For a borrower with $80,000 in debt currently paying $200/month on SAVE, the Standard plan payment could be $850/month — a 325% overnight increase. The Department will not send adequate advance notice. Check your servicer account now.
Deadline to Switch from SAVE: July 1, 2026
After this date, borrowers remaining on SAVE will be auto-enrolled in Standard repayment — payments could double or triple.
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2026 Student Loan Plan Comparison
Compare Standard, RAP, and Legacy IDR — including the full tax bomb at forgiveness.
Tax Bomb Warning (Effective Jan 1, 2026)
Under the OBBBA, all forgiven student loan balances are once again taxable as ordinary income. A $60,000 forgiven balance in the 22% bracket creates a $13,200 surprise tax bill in the year of forgiveness.
Plan Comparison at 6.39% Interest
Fixed payment. No forgiveness. No tax bomb. Pays off fastest.
Forgiveness after 30 years. Tax bomb applies on $0 forgiven balance.
Available only for loans taken before July 1, 2026. Forgiveness after 20 years.
Total Cost Comparison (including tax bomb)
Based on your results — what to do next:
How does IDR affect your take-home pay?
RAP payments are income-based. See your exact net paycheck after student loan payments, FICA, and federal/state tax.
Are student loans crowding out retirement?
Every dollar going to loans isn't going to retirement. Check if you can still hit your retirement target while on RAP.
The opportunity cost of student debt
See what your loan payments would compound to over 10 years if invested at 7% instead of servicing debt.