Quick answer: As of July 1, 2026, the Repayment Assistance Plan (RAP) is available at studentaid.gov/idr. For physicians pursuing Public Service Loan Forgiveness (PSLF), RAP often costs less if you have a large loan balance relative to annual income and borrowed before July 1, 2014. If you borrowed on or after that date or your current loan balance is less than your annual income, Income-Based Repayment (IBR) is usually the cheaper option. The bigger risk? Taking out any federal loan – parent plus loans included – after July 1, 2026, will disqualify you from IBR entirely.

If you carry multiple six figures of student debt and a physician’s income on the horizon, your repayment plan choice is worth real money, potentially tens of thousands of dollars. The arrival of the Repayment Assistance Plan (RAP) changes the math. Here’s how RAP and the Income-Based Repayment (IBR) plan compare, and how to decide which one fits your situation.

How does RAP calculate payments compared to IBR?

The two plans use very different formulas, and that difference drives the cost.

RAP charges up to 10% of your adjusted gross income (AGI), with no cap. As your income climbs, so does your payment
IBR is based on discretionary income (AGI reduced by 150% of the Family Poverty Level by family size) and is capped at the standard 10-year payment amount once you reach the Partial Financial Hardship (PFH) threshold.

That cap matters for physicians. Attending Physician salaries are dramatically different than compensation in training. Under RAP, a growing income means a growing payment with no ceiling. Under IBR, once you hit the PFH limit, your payment stops climbing.

When is RAP the lower-cost option for physicians pursuing PSLF?

RAP tends to win for borrowers who:

Carry a large loan balance relative to income, and
Borrowed before July 1, 2014.

For this group, RAP’s percentage-of-AGI structure, combined with its interest waiver, can produce a lower total cost over a 120 month PSLF timeline than 2009 IBR terms.

Use the free Grad Loan Advice calculator to see what your payment would be.

When does IBR cost less?

IBR is usually the better choice if your annual income is greater than the loan balance because the payment cap protects your highest possible payment on both 2009 IBR and 2014 IBR calculations. It’s also a better choice if you became a federal loan borrower for the first time on or after July 1, 2014 because the 2014 IBR terms are more favorable.

This is especially true once you reach or exceed the Partial Financial Hardship amount. Because IBR caps payments at the 10-year fixed level and RAP does not, a high-earning physician can end up paying more under RAP as income rises. For a borrower moving from residency to a well-paid attending role, that uncapped 10% of AGI can add up quickly.

How do qualifying payments transfer between plans?

This nugget was up in the air for a bit: While qualifying months earned before you switch to RAP carry over to RAP, payments made while on RAP do not count toward IBR.

In other words, the credit flows one direction. Think carefully before moving to RAP, because you can’t bank RAP payments and apply them to an IBR timeline later. This is relevant when you consider the non-PSLF route on these plans where RAP is a 360 month plan and IBR is a 300 month plan for borrowers before July 1, 2014 … 240 month plan otherwise.

Will borrowing after July 1, 2026 disqualify you from IBR?

Short answer, Yes. Based on what the final rules say right now, taking out any federal loan after July 1, 2026 (including Parent PLUS loans) disqualifies you from IBR entirely, for all of your loans. This is a major shift. Previously, you could keep different loans on different repayment plans (FFEL on IBR and DIRECT loans on PAYE).

At present, no one has seen this play out in practice yet. But if the rule holds as written, a single new federal loan could lock you out of IBR and leave RAP as your only income-driven option and the Tiered Standard Plan as the alternative. If you’re considering additional federal borrowing or a parent weighing a Parent Plus loan, factor this in before you sign.

What you should do next

The right plan depends on your loan balance, your borrowing dates, your income trajectory, and whether you’re pursuing PSLF. A few practical steps:

Confirm your federal loan borrower begin date. Whether you first borrowed before or after July 1, 2014, might change the math.
Map your income trajectory. If your attending salary will push you past the PFH threshold, IBR’s cap becomes more valuable.
Pause before any new federal borrowing after July 1, 2026. Weigh whether it’s worth risking your IBR eligibility.
Revisit your strategy as guidance is finalized. RAP is new, and real-world application will clarify open questions.

Run the numbers for your specific situation before you leave SAVE, get kicked off of PAYE, or squander time that could have counted.

Hire Grad Loan Advice® to craft a custom plan.

Frequently Asked Questions

Does my interest capitalize if I move from SAVE to RAP?
No, accrued interest is not added to the principal balance (capitalization of interest) when you move from SAVE to RAP. Simple interest continues to accrue on the principal balance when the loan was issued.

Is RAP or IBR better for PSLF?
For physicians pursuing PSLF, RAP is often the lower-cost plan if you have a large balance relative to income and borrowed before July 1, 2014. If you borrowed on or after that date, IBR is typically cheaper.

Why might IBR cost less than RAP for low debt to income ratio borrowers?
IBR caps payments at the standard 10-year amount once you reach the Partial Financial Hardship threshold. RAP is uncapped at 10% of AGI, so payments keep rising with income.

Do payments made on RAP count toward IBR?
No. Qualifying months earned before switching to RAP carry over to RAP, but payments made while on RAP do not count toward IBR.

When will RAP be available?
The Repayment Assistance Plan is available at studentaid.gov/idr as of July 1, 2026.