:: What Are My Repayment Options? ::
Now that you’re repaying your student loan, you may want to consider a different repayment option that works better with your spending plan. There are several repayment options for you to consider. If you’re interested in any of these options, contact your loan servicer for more information. Visit studentaid.gov to find a repayment option for your federal student loans in five steps or less.
Standard | Graduated | Extended | Income-Sensitive |
Income-Contingent | Income-Based | Pay As You Earn | SAVE | Additional Resources
Standard Repayment
- This plan is the most financially effective way to repay your student loan while minimizing interest costs.
- Payments are due monthly (excluding periods of deferment or forbearance), even if you don't receive any notifications or statements.
- This schedule has a 10-year repayment term.
Graduated Repayment
- This plan is ideal if you have limited income now, but expect to earn more in the future. However, total interest costs are typically higher over the life of the loan.
- Monthly payments begin low, then increase gradually over time.
- Payments must cover accruing interest.
- This schedule has a 10-year repayment term.
Extended Repayment
- This plan is only available to borrowers who have loans totaling more than $30,000.
- You can choose either the standard or graduated repayment option (both are described above).
- The repayment term can be up to 25 years.
Income-Sensitive Repayment
- This plan is only available for FFELP loans.
- This plan is appropriate if your income fluctuates, you have substantial loan balances or you need smaller monthly payments to meet other financial obligations. However, total interest costs are typically higher over the life of the loan.
- Monthly payments are adjusted based on gross monthly income.
- Payments must cover accruing interest.
- This plan must be renewed each year.
Income-Contingent Repayment
- This plan is only available for Direct loans from the U.S. Department of Education.
- Monthly payments are adjusted based on annual income, family size and the total amount of loan(s) and may change as income changes.
- Any outstanding loan balance after 25 years of repayment is forgiven. The amount forgiven may be taxable as income.
Income-Based Repayment
The Income-Based Repayment (IBR) plan is designed to make loan repayment easier for borrowers with lower salaries. The plan:
- Caps the monthly payments at a percentage of a borrower's discretionary income and factors in family size and total amount borrowed
- Adjusts the monthly payment amount each year based on changes in income and family size.
- Sets a maximum repayment period of 25 years. After 25 years, any remaining debt is forgiven.
More information and the necessary forms are available on our Income-Based Repayment plan page. You can also access the Federal Student Aid IDR page to learn more and use their calculator to estimate your payments.
Calculate your monthly payment using the Department of Education's IDR calculator.
Pay As You Earn
- This plan is only available for Direct loans from the U.S. Department of Education.
- You must initially have a partial financial hardship to qualify for this plan.
- Monthly payments are adjusted annually based on changes in income and family size.
- Your payments will be 10 percent of your discretionary income, but no more than they would be on a Standard Repayment Plan.
- This plan sets a maximum repayment period of 20 years. After 20 years, any remaining debt is forgiven. The amount forgiven may be taxable as income.
Saving on a Valuable Education (SAVE), formerly REPAYE
- This plan is only available for Direct loans from the U.S. Department of Education. Direct Parent PLUS Loans and Direct Consolidation Loans that paid off a Parent PLUS Loan are not eligible.
- Monthly payments are adjusted annually based on changes in income and family size.
- Your payments will be 5 percent of your discretionary income for undergraduate loans and 10 percent of your discretionary income for graduate loans. If you have both undergraduate and graduate loans, your payment will be based on a combined weighted average of the two loan types.
- Spouse’s income is excluded from the payment calculation if taxes are filed married, filing separately. It’s important to check with a tax professional before making this change as there could be other financial implications.
- This plan sets a minimum repayment term of 10 years and maximum repayment period of 25 years depending on two factors, 1) how much you originally borrowed and 2) whether your loans were taken out during undergraduate or graduate school. After 20 or 25 years, any remaining debt is forgiven. The amount forgiven may be taxable as income.
- More elements of this plan will go into effect later this year. To learn more about these changes, and all of your repayment options, visit https://studentaid.gov/manage-loans/repayment/plan.
