The July 1 student loan change most calculators are getting wrong (tax bomb on forgiveness is back)
I've been going down the rabbit hole on July 1 changes and noticed something most calculators miss completely. They show your RAP monthly payment — but not the tax bill on forgiven balances at year 30, which is now ordinary income (ARPA exemption expired Dec 31, 2025). For high-balance borrowers that tax event can exceed $60K–$90K and completely changes whether staying in RAP or refinancing is actually cheaper. So I built a free calculator that runs the full 30-year tape — including the tax bomb, the $50 matching credit, the interest subsidy, and the PSLF path if you qualify. Takes 60 seconds. Stores nothing. escaperap.com Disclosure: site earns affiliate commissions if you refinance through a partner link. The calculator itself has no gate and no email requirement.