Step 2: Your household and your loans

Who is on your tax return, and which federal loans you hold, decide which plans you can use and how big the payment is.

What you need to know

Married filing jointly counts your spouse's income in your AGI. Filing separately usually lowers a student loan payment but can cost you tax credits, so it's a decision to run past a CPA with real numbers.

Each dependent on your return takes $50 a month off a RAP payment.

The date your loans were disbursed matters. Loans made before July 1, 2026 can still use IBR. Once you take out a new loan on or after that date, those new loans can only use RAP or the Tiered Standard plan. If you had federal loans before July 1, 2014, you're on the older IBR terms (15% of discretionary income, 25 years).

Already have your loans on StudentAid.gov? Import your file and the guide uses your real balances.

Your household and loans

Household & taxes

Filing status and dependents set your RAP payment.

Tax filing statusDependents on your return

Tax rates on forgiven balances

Federal marginal tax rate when forgiven

State income tax rate

Your federal loans

Total balance and average rate. Import your file to fill these in for you.

Total federal balance

Weighted interest rate

I have (or will get) loans disbursed on or after July 1, 2026True for most students still in school in 2026–27. New loans can only use RAP or Tiered Standard, so IBR is hidden.

Older loans

I had federal loans before July 1, 2014Puts you on old IBR (15% / 25 years).

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.