Financial Aid Repayment Plans

Repayment Information

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!

MOHELA is one of several student loan servicers appointed by the Department of Education. MOHELA has provided a loan simulator to estimate payments based on the plan you select, your earnings, and your loan history. Check it out! Note - you may use the MOHELA loan simulator 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/month Up to 10 Years	You pay less interest over time
Graduated	Payments start lower and then increase, usually every 2 years p to 10 Years	You will pay more interest as compared to the standard plan
Extended	Payments may be fixed or graduated Up to 25 Years	Lower monthly payments than standard 10 year 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 Up to 25 Years	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 years 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 Years	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 years 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 Years	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 years 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 Years	You will pay more over time as compared to standard plan