Step 6: Compare every repayment plan side by side

Here's what each path costs you in total, what gets forgiven, the tax bill, and how much of your pay it takes.

What you need to know

The cheapest plan isn't always the one to pick. A plan that costs less over 30 years but takes 25% of your pay in the years you're buying a house or a practice may not be worth it. That's why the recommendation below is the cheapest federal option that stays under your budget (20% of gross pay unless you change it).

RAP and IBR forgiveness is taxed as income starting with discharges in 2026, so the comparison adds an estimated tax bill and shows how much to set aside each month. PSLF forgiveness is federally tax-free.

Refinancing federal loans with a private lender can lower your rate, but it's permanent: you give up RAP, IBR, PSLF and federal pauses. It's shown separately so you can see the trade-off.

Change the payoff target, refinance rate or budget below and the table updates instantly — changed numbers flash yellow.

Scenarios to compare

Payoff & refinance scenarios

What-ifs to compare against the federal plans.

Aggressive payoff target

yrs

Autopay assumptions

Enrolled in autopay (−1% now, −0.25% after 6/30/2028)ED added a temporary extra 0.75% on top of the usual 0.25%. You must be enrolled by 2026-09-30 to get it.Standard autopay discount (after the temporary window)

Temporary total discount

Months of the temporary discount left

Runs through 2028-06-30. About 20 months from today.

Private / refinanced loans you already have

Paid alongside your federal loans. No income-driven plans, no forgiveness.Max share of gross pay for student loans

Plans whose payment goes above this are never recommended. 10–20% is a common range.

Refinance and comparison settings

Private refinance rate

Private refinance term

yrs

Discount rate (today's-dollars comparison)

Roughly inflation. Money paid in 25 years is worth less than money paid today.

Strategy comparison

Starting balance $300,000Rate 7.95%(autopay −0.25%)7.20% for 20 more monthsDebt ÷ full-salary AGI: 1.7×IBR hidden — loans after 7/1/2026

Income, pre-tax and household inputs change the RAP, IBR and PSLF payments. Standard, Tiered and refinance payments depend only on balance and rate, but every plan's % of pay and whether it fits your 20% budget change with income. Changed numbers flash yellow.

RAP (30-yr forgive): lowest cost, if you commit for 30 years

You'd pay about $749,626 (peak 9% of gross pay), then about $86,163 is forgiven with a $31,880 tax bill. Setting aside about $38/mo covers it. Don't pay extra. Your debt is 1.7× your income; above roughly 2× forgiveness tends to win, below 1× paying it off usually wins.

Aggressive 7-yr would cost less, but it's over your budget

It needs up to $4,668/mo — 31% of your gross pay, above your 20% limit — and would save about $119,083 in today's dollars. Raise the limit under "Payoff & refinance scenarios" if you can handle it.

What about refinancing privately?

At 6.5% the refinance would cost about $114,923 less (today's dollars) than RAP (30-yr forgive), but you'd owe $3,406/mo (23% of gross pay) from day one, which is over your 20% limit. You'd also permanently give up RAP/IBR, PSLF, forgiveness and federal payment pauses, and the higher payment counts against you when a bank sizes a mortgage or practice loan.

Strategy	Year 1 /mo	Year 3 /mo	Peak % of pay	Years	You pay	Forgiven	Tax bill	Total cost	In today's $
Standard (10-year) Default plan if you do nothing. Fastest federal payoff, highest monthly bill. Fixed payment · not affected by income	$3,632	$3,632	24% · over budget	9.9	$428,574	—	—	$428,574	$371,450
Tiered Standard (25-year) New fixed plan for loans made on/after 7/1/2026. Term is set by your balance (10–25 yrs). Fixed payment · not affected by income	$2,306	$2,306	15%	24.2	$667,462	—	—	$667,462	$476,653
RAP → forgiveness at 30 yrsbest federal option Pay the minimum on RAP for 360 months; the rest is forgiven but taxed as income.	$10	$1,434	9%	30.0	$749,626	$86,163	$31,880	$781,506	$468,383
Stay federal + pay off in 7 yrs Enroll in RAP for the safety net, then pay extra (no prepayment penalty) to finish on your timeline.	$4,668	$4,668	31% · over budget	6.9	$386,615	—	—	$386,615	$349,300
Private refinance (6.5% / 10 yrs) Lower rate possible, but you permanently lose RAP/IBR, PSLF, forgiveness, and federal pauses. Fixed payment · not affected by income	$3,406	$3,406	23% · over budget	10.0	$408,773	—	—	$408,773	$353,460

The "tax bomb"

Forgiveness through RAP or IBR counts as income in the year it happens (federal 32% + state 5% assumed). Monthly savings needed to cover it by then, at 5% growth: RAP (30-yr forgive): $38/mo. PSLF forgiveness is federally tax-free.

Balance remaining by year

Standard 10-yrTiered 25-yrRAP (30-yr forgive)Aggressive 7-yrPrivate refi

Lines that end above $0 are forgiven at that point.

Estimates only — not financial, tax, or legal advice. Rules reflect the One Big Beautiful Bill Act as implemented by the Department of Education (last reviewed September 2026). Confirm with your servicer, StudentAid.gov, and a CPA or planner who works with dentists.