Best repayment plan for PSLF: RAP or IBR?
Under Public Service Loan Forgiveness the usual question — which plan costs least over the life of the loan — has a different answer, because the loan does not run its life. After the 120th qualifying payment whatever is left is discharged, and the discharge is not taxed. So the best repayment plan for PSLF is the qualifying plan with the lowest payments: every dollar not paid in those ten years is a dollar forgiven. The tables below run RAP and IBR side by side for four balances at eight incomes and report the cheaper one. Every cell is a full projection: single filer in Texas, 28 years old, income growing 4% a year, 6.5% federal loans taken in 2026, run through age 60 so a 30-year RAP term and its forgiveness tax fall inside the window.
RAP vs IBR under PSLF, by income
RAP's payment is 1–10% of AGI by $10,000 band; IBR's is 10% of income above $23,940, capped at the standard 10-year payment on the original balance. Neither depends on the balance until IBR's cap binds — which is why the balance decides how much is forgiven, and the income decides which plan is cheaper.
$50k of loans — IBR is the lower ten-year total at every income where anything is left to forgive
| Income | RAP /mo · 10-yr | IBR /mo · 10-yr | Forgiven tax-free | Lower |
|---|---|---|---|---|
| $40k | $97 · $18,120 | $122 · $17,232 | $65,268 | IBR $887 less |
| $50k | $160 · $28,732 | $197 · $28,023 | $54,477 | IBR $709 less |
| $60k | $240 · $41,449 | $280 · $39,552 | $41,410 | IBR $1,897 less |
| $75k | $423 · $69,060 | $405 · $57,268 | $17,075 | IBR $11,791 less |
| $100k | $750 · $60,944 | $568 · $68,129 | paid off at 33 | no benefit |
| $125k | $1,042 · $57,890 | $568 · $68,129 | paid off at 32 | no benefit |
| $150k | $1,250 · $56,428 | $568 · $68,129 | paid off at 31 | no benefit |
| $200k | $1,667 · $54,698 | $568 · $68,129 | paid off at 30 | no benefit |
$100k of loans — the lower ten-year total is IBR at $40k–$125k, RAP at $150k of income
| Income | RAP /mo · 10-yr | IBR /mo · 10-yr | Forgiven tax-free | Lower |
|---|---|---|---|---|
| $40k | $97 · $18,120 | $122 · $17,232 | $147,768 | IBR $887 less |
| $50k | $160 · $28,732 | $197 · $28,023 | $136,977 | IBR $709 less |
| $60k | $240 · $41,449 | $280 · $39,552 | $125,448 | IBR $1,897 less |
| $75k | $423 · $68,768 | $405 · $57,380 | $107,620 | IBR $11,388 less |
| $100k | $750 · $115,146 | $634 · $89,836 | $68,036 | IBR $25,311 less |
| $125k | $1,042 · $136,529 | $842 · $118,536 | $28,311 | IBR $17,993 less |
| $150k | $1,250 · $128,891 | $1,051 · $133,655 | $0 | RAP $4,764 less |
| $200k | $1,667 · $120,388 | $1,135 · $136,258 | paid off at 33 | no benefit |
$200k of loans — IBR is the lower ten-year total at every income where anything is left to forgive
| Income | RAP /mo · 10-yr | IBR /mo · 10-yr | Forgiven tax-free | Lower |
|---|---|---|---|---|
| $40k | $97 · $18,120 | $122 · $17,232 | $312,768 | IBR $887 less |
| $50k | $160 · $28,732 | $197 · $28,023 | $301,977 | IBR $709 less |
| $60k | $240 · $41,449 | $280 · $39,552 | $290,448 | IBR $1,897 less |
| $75k | $423 · $68,768 | $405 · $57,380 | $272,620 | IBR $11,388 less |
| $100k | $750 · $115,146 | $634 · $89,836 | $240,164 | IBR $25,311 less |
| $125k | $1,042 · $147,117 | $842 · $119,834 | $210,166 | IBR $27,282 less |
| $150k | $1,250 · $177,089 | $1,051 · $149,806 | $176,907 | IBR $27,282 less |
| $200k | $1,667 · $237,091 | $1,467 · $209,808 | $94,944 | IBR $27,283 less |
$300k of loans — IBR is the lower ten-year total at every income where anything is left to forgive
| Income | RAP /mo · 10-yr | IBR /mo · 10-yr | Forgiven tax-free | Lower |
|---|---|---|---|---|
| $40k | $97 · $18,120 | $122 · $17,232 | $477,768 | IBR $887 less |
| $50k | $160 · $28,732 | $197 · $28,023 | $466,977 | IBR $709 less |
| $60k | $240 · $41,449 | $280 · $39,552 | $455,448 | IBR $1,897 less |
| $75k | $423 · $68,768 | $405 · $57,380 | $437,620 | IBR $11,388 less |
| $100k | $750 · $115,146 | $634 · $89,836 | $405,164 | IBR $25,311 less |
| $125k | $1,042 · $147,117 | $842 · $119,834 | $375,166 | IBR $27,282 less |
| $150k | $1,250 · $177,089 | $1,051 · $149,806 | $345,194 | IBR $27,282 less |
| $200k | $1,667 · $237,091 | $1,467 · $209,808 | $283,876 | IBR $27,283 less |
"No benefit" rows: the RAP payments retire the loan before the 120th payment, so there is nothing for PSLF to forgive — $50k at $100k, $50k at $125k, $50k at $150k, $50k at $200k, $100k at $200k.
Why the balance matters even though the payment ignores it
The payment is set by income, so two borrowers earning $75k pay the same $423 a month on RAP whether they owe $50k or $300k. What the balance changes is the other side of the ledger: how much is still there at payment 120. On $50k at $75k, RAP leaves $2,848 to forgive and IBR leaves $17,075; on $300k, RAP leaves $294,000 to forgive and IBR leaves $437,620. The comparison outside public service, where the forgiven balance is taxed instead, is on which repayment plan is best; the RAP formula itself is on the RAP calculator.
Educational comparison, not advice. Figures are one persona — single filer in Texas, 28 years old, income growing 4% a year, 6.5% federal loans taken in 2026, run through age 60 so a 30-year RAP term and its forgiveness tax fall inside the window — run through Coastline's projection engine; a different income path, state, filing status or rate changes them. IBR is modelled on its post-2014 terms (10% of income above 150% of the poverty line, capped at the 10-year standard payment, forgiveness at 20 years); RAP's per-dependent reduction counts children aged 0–23. Repayment rules change often — verify current terms with your servicer and studentaid.gov, and model your own balance in the calculator.
Common questions
Which repayment plan is best for PSLF?
The qualifying plan with the lower payments, because the balance left after 120 payments is discharged without tax. On $100k at a $75k income that is IBR: $57,380 paid over the ten years against $68,768, with $107,620 forgiven. At $100k of loans the lower ten-year total is IBR at $40k–$125k, RAP at $150k of income.
Is RAP a qualifying plan for PSLF?
Coastline models it as one: with PSLF switched on, a RAP borrower’s remaining balance is discharged tax-free after 120 payments, exactly as an IBR borrower’s is. For loans taken from July 2026 RAP is the only income-driven plan, so it is the PSLF path for new borrowers; confirm current program rules with your servicer.
Does the balance matter under PSLF?
Not for the payment — RAP and IBR set it from income alone (IBR is capped at the standard payment on the original balance). It matters for the amount forgiven: the same $75k borrower pays $423 a month on RAP whether the loan is $50k or $300k, but at payment 120 on $50k RAP leaves $2,848 to forgive and IBR leaves $17,075, while on $300k RAP leaves $294,000 to forgive and IBR leaves $437,620. Below a certain balance the payments clear the loan before year 10 and PSLF changes nothing.
Is PSLF forgiveness taxable?
No. The engine books a PSLF discharge as tax-free, and no tax appears in the forgiveness year. Forgiveness at the end of an income-driven plan outside PSLF — RAP at 30 years, IBR at 20 — is taxed as income in the year it lands.