Every number, sourced

RAP payment

Annual base payment from AGI (34 CFR 685.209(f)(5)) — cliff brackets; the percentage applies to the entire AGI:

Monthly payment = base ÷ 12, minus $50 per dependent (defined by IRC §152 and claimed on the borrower's return; 685.209(b)(3)), floored at $10/month after the dependent reduction (685.209(g)(3)(ii)). RAP uses raw AGI — no poverty-guideline deduction. For married borrowers filing separately, only the borrower's own AGI and own claimed dependents count (685.209(e)(1)(i)).

Interest: unpaid accrued interest is not charged in any on-time month (685.209(h)(4)) — modeled as balances never increasing. Principal match (685.209(o)(2)): each on-time month, principal is additionally reduced by max(0, min($50, payment) − principal paid by the borrower). Note this is not a guaranteed $50: a $10 minimum payment earns a $10 match. Forgiveness after 360 qualifying monthly payments (685.209(k)(7)).

IBR payment

Monthly payment = the lesser of (15% — or 10% for post-July-2014 "new borrowers" who take no new loan after July 2026 — of discretionary income ÷ 12) and the 10-year Standard payment frozen at plan entry (685.209(f)(2)–(3)). Discretionary income = max($0, AGI − 150% of the poverty guideline for the borrower's family size and state group) (685.209(b)(4)). Payments under $5 become $0; payments of $5–$9.99 become $10 (685.209(g)(1)(iii)). Unpaid interest accrues (simple interest on principal, not compounded). Forgiveness at 300 payments (25 years), or 240 (20 years) for new borrowers (685.209(k)(1)–(2)). The partial-financial-hardship entry test was repealed effective December 2025.

2026 HHS poverty guidelines used (ASPE, effective January 13, 2026):

Standard plan

Classic 10-year amortization with a $50 minimum payment (34 CFR 685.208). Borrowers with any loan first disbursed on/after July 1, 2026 instead receive the Tiered Standard plan (10/15/20/25 years at balance breakpoints of $25k/$50k/$100k) — the calculator models the classic 10-year version, which is also the IBR cap and the benchmark used in forgiveness credit rules.

Taxes on forgiveness

The ARPA exclusion for IDR forgiveness expired December 31, 2025 and was not extended, so discharges in 2026+ are federal taxable income in the year of discharge; PSLF and death/disability discharges remain tax-free federally. State treatment varies and is changing in 2026 legislative sessions, so the calculator applies a single user-entered combined tax rate to the forgiven amount rather than hardcoding state rules. Insolvency (IRC §108(a)(1)(B)) may reduce or eliminate the taxable amount — a topic for a tax professional.

Modeling assumptions

• All payments are made on time (this is what activates RAP's interest waiver and principal match).
• Income (AGI) grows once per year at the user-set rate; payments recalculate annually.
• Interest accrues monthly at rate ÷ 12 on outstanding principal only; unpaid interest is not compounded.
• The IBR cap is computed from the balance and rate at the moment of comparison ("plan entry").
• Forgiveness tax = forgiven balance × the user-entered rate, as a same-year lump estimate.
• Not modeled: consolidation, default, deferment/forbearance months, PSLF, married joint-borrower payment proration, and the Tiered Standard terms. When these apply to you, treat results as a lower bound on complexity, not a final answer.

Primary sources

• RISE final rule, 91 Fed. Reg. 23768 (May 1, 2026) — the regulatory text for RAP, IBR, and Standard plans
• CRS In Focus IF13075 — Congressional Research Service summary of HEA §455(q)
• HHS/ASPE 2026 Poverty Guidelines
• FSA: 2026–27 Direct Loan interest rates
• studentaid.gov — official plan enrollment and servicer information

Corrections

Found a discrepancy with your servicer's numbers or a rule change we haven't caught? Report it — corrections are logged here with dates.