IDR Plan Comparison: Which Saves You the Most?

Choosing the right income-driven repayment plan can save you thousands of dollars. Here's how the main current options compare after the SAVE transition.

Quick Overview

Plan	Payment %	Forgiveness	Monthly Cap	Spouse Income
SAVE	5-10%	10-20 years	No	Separate
PAYE	10%	20 years	Yes	Separate
IBR	10-15%	20-25 years	No	Separate
ICR	20%	25 years	No	Counted

Deep Dive: Each Plan

RAP Plan

New 2026 income-driven plan

1-10% of AGI based on income tier
$50 monthly reduction for each dependent
$10 minimum monthly payment
Forgiveness after 30 years outside PSLF
Unpaid monthly interest subsidy and matching principal benefit after full, on-time payments

Need a SAVE transition guide? Our SAVE Plan Alternatives Guide explains your options in detail.

🔰 PAYE Plan

Best for newer borrowers with high debt

10% of discretionary income
Payment cap protects high earners
No interest capitalization if staying in plan
Forgiveness after 20 years

Requirements: Loans after October 2007 and October 2011

📊 IBR Plan

Available to all borrowers

10% (newer borrowers) or 15% (older borrowers)
Spouse income excluded if filing taxes separately
Forgiveness after 20-25 years

Best for: Older loans, married filing separately

👨‍👩‍👧 ICR Plan

Only option for Parent PLUS borrowers

20% of discretionary income (highest!)
Always counts spouse income
Forgiveness after 25 years

Requirements: Parent PLUS loans must be consolidated into Direct Loans first

Have Parent PLUS loans? Read our complete Parent PLUS Loan Repayment Guide for detailed strategies and options.

How to Choose: Decision Tree

Do you have Parent PLUS loans?

→ Yes: ICR (after consolidation)
→ No: Are your loans after Oct 2007 & Oct 2011?
→ Yes: Compare RAP, PAYE, and IBR
→ No: Compare RAP and IBR

Payment Examples

Borrower: $50,000 debt, $40,000 income, single

Plan	Monthly Payment	Total Paid (20 yrs)	Forgiveness
RAP	~$133	~$48,000 over 30 years	Depends on balance and interest
PAYE	~$317	~$76,000 over 20 years	Depends on balance and interest
IBR	~$317	~$76,000 over 20-25 years	Depends on borrower timing
ICR	~$633	~$190,000 over 25 years	Depends on balance and interest

Key Factors to Consider

1. Loan Type

Parent PLUS? → ICR only
Direct Loans? → All options available

2. Income Level

Low income → Compare RAP against IBR/PAYE; RAP has a $10 minimum and no poverty-line exclusion
High income → PAYE (payment cap)

3. Forgiveness Timeline

Want PSLF → Focus on PSLF-qualifying repayment and employer certification, not only the lowest payment
Need flexibility → IBR (available to all)

4. Marital Status

Married filing separately → Compare IBR/PAYE spouse-income treatment against RAP's AGI-based formula
Married filing jointly → All plans count spouse income

Pro Tips

💡 Strategic move: Since SAVE is no longer available for new repayment elections, compare RAP's interest and principal benefits against legacy IDR payment formulas before switching.

💡 Payment cap matters: PAYE protects you if your income spikes – payments never exceed 10-year standard repayment amount.

💡 Consolidation warning: Consolidating older loans resets your forgiveness clock – only do this if necessary.

Still unsure? Use our IDR Calculator to see personalized comparisons for your situation.