Before your loan goes into repayment you’ll need to select a repayment plan that best fits your financial situation. If you need assistance or further information, be sure to contact your loan servicer and use the online calculator to help you determine your payment amount. You will be allowed to choose from these plans:

Use the Loan Simulator to explore repayment options

Standard repayment

Under the standard repayment plan, you will pay a fixed amount of at least $50 each month for up to 10 years. For most borrowers, this plan results in the lowest total interest paid because the repayment period is shorter than it would be under any of the other repayment plans.

Graduated repayment

The graduated repayment plan may be beneficial if your income is low when you leave school but is likely to steadily increase. Payments start out low and then increase every two years. The minimum payment equals the amount of interest that accrues monthly for up to the maximum repayment period – 10 years for Subsidized and Unsubsidized Stafford and PLUS Loans, and 10-30 years for Consolidation Loans (depending on the total loan indebtedness).

Extended repayment

You may choose the extended plan if you did not have an outstanding balance on a FFEL or Direct Program loan as of October 7, 1998 or on the date you obtained a student loan after that date and have more than $30,000 in outstanding Direct Loan Program loans (Note: FFEL and Direct Loans cannot be combined to meet this minimum). Under this plan:

  • you may choose to make either fixed or graduated monthly payments
  • the minimum payment for a fixed extended payment plan is $50 per month
  • the maximum repayment period is 25 years

Income-driven repayment

Available for Direct Loans only, the income-driven plans base the monthly payment on your yearly income, family size and loan amount. As your income rises or falls, so do your payments. There are three income-driven repayment plans available:

  • Income Based Repayment (IBR)
  • Pay as You Earn
  • Income Contingent Repayment (ICR)