Student Loan Refinance Calculator: RAP and Tiered Standard

What the calculator compares

The first part compares two fixed-rate loans. It works out the monthly payment that would clear your balance at your current rate over the years you have left, and the payment for a refinanced loan at the new rate and term. It then shows the difference in the monthly payment and in the total interest you would pay from today. The second part estimates two federal repayment plans available from July 1, 2026: the Repayment Assistance Plan (RAP) and the Tiered Standard plan.

A worked example

A $30,000 balance at 6.52%, the 2026-27 rate for new undergraduate Direct Loans, with 10 years left costs $340.95 a month and $10,913.92 in interest. Refinancing at 5% over 10 years lowers the payment to $318.20 and the interest to $8,183.59, saving $2,730.33. Stretch the refinanced loan to 15 years and the payment falls to $237.24, but the interest rises to $12,702.86, which is $1,788.94 more than keeping the loan as it is. A lower payment is not the same as a cheaper loan.

You can check the payments in a spreadsheet: =PMT(6.52%/12, 120, -30000) returns 340.95 and =PMT(5%/12, 120, -30000) returns 318.20.

How the RAP estimate works

Under RAP, your yearly base payment is a percentage of your adjusted gross income. It is $120 a year if your AGI is $10,000 or less, then 1% for AGI up to $20,000, rising one percentage point for each $10,000 band to 10% above $100,000. That amount is divided by 12 and reduced by $50 a month for each dependent, with a minimum of $10 a month. If you are married and file jointly, your spouse's income counts too.

With an AGI of $55,000 the base rate is 5%, so the payment is $229.17 a month, or $129.17 with two dependents. With an AGI of $35,000 it is $87.50, less than the $163 of interest a $30,000 balance at 6.52% builds each month. Under RAP, interest left unpaid after an on-time payment is covered, and if a payment reduces your principal by less than $50, a matching principal payment makes up the difference up to $50. Any balance left after 360 qualifying payments is forgiven, though the forgiven amount may count as taxable income.

The Tiered Standard plan

For loans first disbursed on or after July 1, 2026, the Tiered Standard plan has fixed monthly payments over a term set by your balance when you enter it: 10 years under $25,000, 15 years from $25,000 to under $50,000, 20 years from $50,000 to under $100,000 and 25 years for $100,000 or more. The $30,000 example gets 15 years, or $261.66 a month at 6.52%. It is not a qualifying plan for Public Service Loan Forgiveness.

What refinancing federal loans gives up

Refinancing federal loans with a private lender replaces them with a private loan, and it cannot be undone. The Consumer Financial Protection Bureau warns that you lose federal income-driven repayment options, deferment, forbearance and cancellation, eligibility for Public Service Loan Forgiveness, and discharge if you die or become permanently disabled. If a refinance saves only a little, those protections may be worth more. If refinancing still looks right, the debt payoff calculator helps you rank it against other debts, and the take-home pay calculator shows how the payment fits your paycheck.