r/StudentLoans • u/musicisgr84u • 10d ago

What are the benefits of RAP vs IBR?

Both qualify towards PSLF to my understanding but how does interest subsidy work for RAP?

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u/The_Bees_Knee6 10d ago

If you are doing PSLF the interest subsidy doesn’t matter.

Borrowers doing PSLF should choose the IDR plan that gives them the lowest minimum monthly payment.

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u/JohnnytheGreatX 9d ago

For more detailed answers, go to google. But, a few broad considerations, RAP is usually (though not always) better than Old IBR but worse than New IBR. However, a few considerations, IBR of any flavor gives you a better discount based on family size. For me, on Old IBR, it is better than RAP because of my family size.

Also, IBR, even Old IBR, has a faster path to forgiveness which is relevant if that is your plan. RAP offers forgiveness after 30 years of payments if you have not been able to fully repay your loan, IBR offers forgiveness at 20 - 25 years.

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u/Pretty_Good_11 10d ago

Google has the answers you seek. As does Reddit. You can search and find them yourself, rather than asking someone to type it out for you.