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Federal Loan Repayment Plans

You may choose from a number of options for repaying your federal student loans such as Federal Stafford, PLUS and Consolidation loans. The federal government establishes the guidelines for these programs.

Standard

The Standard Repayment Plan is the basic repayment plan for all federal student loans. Using this plan, you will pay off your loans:

  • In the shortest amount of time.
  • With the least amount of interest.
  • In 10 years or less, except for consolidation loans.

If you're able to afford Standard Repayment Plan payments, it is in your best interest to make payments using this plan as you will pay less interest over the life of your loans on this plan.

Graduated

The Graduated Repayment Plan lets you begin with lower payments that then increase every two years. Using this plan, you will:

  • Pay more in interest over the life of the loans because the principal balance will decrease at a slower rate.
  • Pay off your loans in 10 years or less, except for consolidation loans.

Extended

The Extended Repayment Plan lets you make payments over a longer repayment term. Using this plan, you will:

  • Pay more in interest over the life of the loans because the principal balance will decrease at a slower rate.
  • Have up to 25 years to repay your loans.
  • Have the choice to make level or graduated payments.

To qualify for the Extended Repayment Plan, you must meet two criteria:

  • Have had no outstanding balance on a Federal Family Education Loan Program (FFELP) loan as of Oct. 7, 1998, or on the date you obtained a FFELP loan after Oct. 7, 1998.
  • Have more than $30,000 in outstanding FFELP loans.

Income-Based

The Income-Based Repayment (IBR) Plan was created for borrowers with outstanding federal student loan debt that is higher than or represents a significant portion of their annual income.

Using this plan:

  • Your maximum monthly payment amount will be 15% of your discretionary income but no more than payments under the Standard Repayment Plan.
  • Monthly payments may be as low as $0.
  • Any remaining loan balance after 25 years of payments will be forgiven.

You must qualify for reduced payments under the IBR Plan by submitting income and family size information on an annual basis.

Apply electronically at www.StudentLoans.gov or download the IBR Request Form Instructions (PDF) and Request Form (PDF).

You can see estimates of your monthly payment amounts under the IBR Plan using the U.S. Department of Education's Repayment Estimator.

Income-Sensitive

The Income-Sensitive Repayment Plan bases your monthly payment amount on a percentage of your annual income; payments are between 4% and 25% of your verified gross income.

Using this plan:

  • Your payments will never be less than the amount of interest that accrues between payments.
  • You will pay more in interest over the life of your loans because the principal balance will decrease at a slower rate.

You must qualify for an Income-Sensitive Repayment Plan by providing us with documentation of your monthly gross income.

Estimate Payments

To determine what your payments would be under any of these repayment plans, please call us at (800) 243-7552.

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