RAP and IBR: how payment credit differs
RAP and IBR use different forgiveness timelines. Learn why a payment that counts under one plan may not count under another, and how PSLF is separate.
By Clevara LLC · Published · Federal rules last reviewed
Are RAP and IBR forgiveness timelines the same?
No. The income-driven repayment regulation sets RAP’s plan-term forgiveness threshold at 360 qualifying monthly payments over at least 30 years. IBR uses a 20- or 25-year framework depending on the borrower cohort. These are program conditions, not a promise that a balance will remain or be canceled on a particular date.
Does an IBR payment count toward RAP?
34 CFR 685.209(k)(8) includes required IBR payments among the categories that can count toward RAP. It also lists certain earlier income-contingent payments and other periods, each with its own conditions. “I had the loan for ten years” is not equivalent to ten years of credited payments.
For illustration, 60 qualifying IBR payments can supply 60 months toward the RAP threshold if the listed conditions are met. This arithmetic example is not a check of any borrower’s actual record.
Does a RAP payment count toward IBR?
The credit provision in 34 CFR 685.209(k)(4) excludes RAP payments from the income-driven payments counted toward IBR, PAYE and ICR forgiveness. The transfer rules therefore differ by direction. A move between plans is not simply a change in the monthly bill.
Returning to another plan is also subject to its enrollment rules. This guide does not establish that a borrower can enter or re-enter IBR, PAYE or ICR.
What about Public Service Loan Forgiveness?
PSLF has a separate payment count and employment, loan and repayment conditions. It is not the same as reaching an income-driven plan’s full repayment term. The Department of Education determines PSLF credit and discharge; a general timeline cannot replace its payment-count record.
When reading an estimate, distinguish the plan’s maximum period, modeled payoff time and credited payment count. A loan paid off before a forgiveness threshold has no remaining balance for that projection to cancel.
Open the federal PSLF Help Tool →Sources
Related
Clevara compares modeled repayment amounts and program criteria using a loan file and questionnaire answers. The sample shows the report and its limitations using illustrative data.
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