I’m trying to be prepared for the upcoming changes post SAVE and make the best decision on which plan to go with. From my understanding, one of the biggest benefits of RAP is the subsidized interest and the security that gives someone. However, if my monthly payment already surpasses my monthly accrued interest, would there be any benefit at all to go with RAP (which would be a higher monthly payment)?
    I used a generator that gave me an estimate of RAP being about $70 more a month than PAYE would be.
    And yeah I know PAYE only goes two more years.. but just trying to decide what to do for now.

    If more details are helpful, my monthly accrued interest right now is about $110.
    Estimated RAP payment is $355
    Estimated PAYE payment is $286

    I’m working towards PSLF however still have about 6 years left and can’t confidently say I’ll be staying in non profit, so I want a plan in place that doesn’t involve my loan growing any more.

    Any benefit to RAP over PAYE if your monthly payment already covers your interest?
    byu/Katdog272 inStudentLoans



    Posted by Katdog272

    2 Comments

    1. ContractedHipFlexors on

      Currently in PAYE working towards PSLF and debating the same about PAYE vs RAP, and which option is the lower payment… I’m still trying to figure out how each of them are calculated as the verbiage is confusing to me…

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