Financial Aid
Repayment Plans

Deciding on a repayment plan for your federal student loans can be overwhelming if you don’t know all of your options. The resources available here can help you pick the plan that works best for you.  Some things to consider when comparing different repayment plans: the total amount you will repay, your income after graduation, your current expenses, and the time frame of your repayment selection.

Your loan servicer can assist you with setting up and changing your payment plan.  There are options available if you select a repayment plan and your circumstances subsequently change!

FedLoan Servicing is one of several student loan servicers appointed by the Department of Education. FedLoan has provided an interactive calculator to estimate payments based on the plan you select, your earnings, and your loan history. Check it out! Note - you may use the FedLoan calculator for payment estimates regardless of whether or not they are your assigned servicer.

*Private/Alternative loan lenders have their own loan repayment options. For information to repay private loans, contact your lender directly.

Side by Side Comparison of some of the plans you may select:

 

Repayment Plan

Monthly Payment & Time Frame

Monthly Payment & Time Frame

Standard

-Payments are fixed amount of at least $50/mo.

-Up to 10 yrs

-You pay less interest over time

Graduated

-Payments start lower and then increase, usually every 2 yrs.

-Up to 10 yrs

-You will pay more interest as compared to standard plan

Extended

-Payments may be fixed or graduated

Up to 25 yrs

-Lower monthly payments than standard 10 yr plan.

-Must have more than $30,000 in Direct Loan debt

Income-Based (IBR)

-Maximum monthly payment will be 15% of discretionary income (difference between AGI and 150% of poverty guideline)

-Your payments change as your income changes

-Up to 25 yrs

-You must have a partial financial hardship

-Lower monthly payments than standard plan

-You will pay more over time as compared to standard plan

-If you have not repaid your loan in full after making the equivalent of 25 yrs of monthly payments, the outstanding balance will be forgiven.

Pay As You Earn

-Maximum monthly payment will be 10% of discretionary income.

-Payments change as income changes

-Up to 20 yrs

-You must have a partial financial hardship

-Lower monthly payments than standard plan

-You will pay more over time as compared to standard plan

-If you have not repaid your loan in full after making the equivalent of 20 yrs of monthly payments, the outstanding balance will be forgiven.

Income-Contingent

-Payments are calculated each year and based on your AGI, family size, and total of Direct Loans

-Payments change as income changes

-Up to 25 yrs

-You will pay more over time as compared to standard plan

-If you have not repaid your loan in full after making the equivalent of 25 yrs of monthly payments, the outstanding balance will be forgiven.

Income-Sensitive

-Monthly payment is based on annual income

-Payments change as your income changes

-Up to 10 yrs

-You will pay more over time as compared to standard plan

 

To calculate your loan payment based on the actual amount you have already borrowed , go to studentloans.gov, sign in, and then click on "Repayment Estimator" on the right.

For more detailed information regarding repayment plans you may also want to refer to the Federal Student Aid website.