Repayment Options

You can repay your student loan in a number of different ways, but be aware that the more you pay now, the less you end up paying in accumulated interest. In other words, Standard Repayment is the least expensive plan in the long run. However, some borrowers may find it easier to pay less when they enter repayment.

Repayment Schedules Available to Federal Loan Borrowers
Repayment Schedule	Repayment Description
Standard Repayment	This is the normal schedule of monthly payments for all loans. The Standard Repayment period for each loan lasts up to 10 years, depending on the loan amount. The payments are set by your lender and must be at least $50 per month. Standard Repayment lets you pay off the interest that has accrued over the month, plus some of the principal balance. When you enter repayment, your loan will be set to this schedule unless you apply for a different schedule with your lender.
Extended Repayment	This schedule stretches the repayment period to 25 years. Extended Repayment is available to borrowers whose oldest loan was originated on or after October 7, 1998. While this schedule lowers your monthly payments, it also increases the total amount of interest that you pay over the life of the loan, making your total loan larger.
Graduated Repayment	Do you see yourself making more money in the future than you do now? Then this is a plan that may work for you. Graduated Repayment lets you pay just the interest on your loan for up to 4 years. Payments then increase gradually so that the loan is repaid in the same amount of time as it would under Standard Repayment. The Graduated Repayment schedule increases the total amount of interest you pay over the life of the loan.
Income-Sensitive Repayment	If you don’t earn enough to cover your loan payments, you may be eligible for Income-Sensitive Repayment, which arranges a monthly payment of 4% – 25% of your gross monthly income. This plan is available for up to 5 years and may extend the total loan repayment term to as much as 15 years. Income-Sensitive Repayment increases the total amount of interest you will pay over the life of the loan.
Income-Based Repayment	Income-Based Repayment caps your payments at no more than 15% of your discretionary income, which is based on your income, family size, and total amount borrowed. This plan may extend your repayment period, which will result in you paying more interest over the life of the loan; however, after 25 years of payments, any remaining debt is discharged. To qualify for this plan, you must show partial financial hardship.
Consolidation	Consolidation allows borrowers to combine multiple loans into one, extend the repayment term, and in some cases lower the monthly payment. Consolidated loans are also eligible for the repayment plans listed here. To find out more, visit our Consolidation Page.