Financial Aid

Student Loan Repayment Plans


Making the right choice about a repayment plan can give a borrower an advantage in meeting their future loan debt obligations. A borrower may choose one of the following repayment plans to repay their student loan(s). If a borrower does not choose a repayment plan, the loan holder will automatically place a borrower in the standard repayment plan. A borrower can change repayment plans at any time after they begin repaying their loan(s).


Standard Repayment

This is the plan a borrower will have when he/she enters repayment, unless requested otherwise. It's also the fastest and most cost-effective.

Your financial situation

As the borrower, you can afford the monthly payments.

Eligible loans

Direct Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • PLUS Consolidation
  • Consolidation that includes a Parent PLUS Loan

FFELP Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • Consolidation that includes a Parent PLUS

Monthly payments
  • Minimum monthly payments start at $50.
  • Payments of principal and interest remain the same throughout repayment (10 years max).
  • Small changes may occur for variable interest rate loans or due to capitalized interest.
  • Repayment plan calculator

Things to consider

If a borrower can't afford the payments, choose another plan that fits his/her budget.

How to apply

No need to apply since the borrower automatically starts repayment on this plan.

Graduated Repayment

This plan allows for smaller payments to start and then they gradually increase over time.

Your financial situation

As the borrower, a smaller monthly payment would be better right now.

Eligible loans

Direct Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • PLUS Consolidation
  • Consolidation that includes a Parent PLUS Loan

FFELP Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • Consolidation that includes a Parent PLUS Loan

Monthly payments

Things to consider
  • Assumes that the borrower's income will grow enough to afford increasing payments.
  • Initial payments mainly cover interest, not the principal balance.
  • A borrower will pay a greater amount of interest than with the standard repayment plan.

How to apply

Contact the holder of the loan(s).

25-Year Extended Repayment

If a borrower has more than $30,000 in outstanding FFELP (Federal Family Education Loan Program) Loans or more than $30,000 in outstanding FDLP (Federal Direct Loan Program) Loans, this plan allows him/her to extend the repayment term past the standard 10 years.

Your financial situation

As the borrower, there is a lot of debt, but none of the other payment plans work.

Eligible loans

Direct Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • PLUS Consolidation
  • Consolidation that includes a Parent PLUS Loan

FFELP Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • Consolidation that includes a Parent PLUS Loan

Monthly payments

Things to consider
  • Only available if the loans were first disbursed on/after October 7, 1998, and the current balance meets the above-mentioned criteria.

    For example: If you have $35,000 in outstanding FFELP Loans and $10,000 in FDLP Loans, you can choose extended repayment for the FFELP Loans, but not the FDLP Loans.
  • Longer repayment period means higher interest costs compared to a standard (level) or graduated repayment plan.

How to apply

Contact the holder of the loan(s).

Income-Based Repayment (IBR)

Under this plan, the monthly payments are based on the borrower's eligible federal student loan debt, adjusted gross income and family size. If the borrower is married, the spouse's student loan debt and adjusted gross income are also taken into consideration.

Your financial situation

As the borrower, you have little or no income, mounds of student loan debt and you are stressed about the monthly payments.

Eligible loans

Direct Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS

The following Direct Loans are NOT eligible for this payment plan: Parent PLUS, PLUS Consolidation and Consolidation that includes a Parent PLUS Loan.

FFELP Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS

The following FFELP Loans are NOT eligible for this payment plan: Parent PLUS and Consolidation that includes a Parent PLUS Loan.

Monthly payments
  • Based on the borrower's eligible federal student loan debt, adjusted gross income (individually or with the spouse, as applicable), family size and the state of residence.
  • May be less than the interest that accrues each month.
  • Are recalculated annually (visit the IBR Calculator on Student Aid on the Web).

Things to consider
  • Requires a borrower to qualify by proving he/she has a partial financial hardship and submitting documentation annually.
  • May extend the repayment period past the standard 10 years (25 years maximum).
  • Offers loan forgiveness after 25 years once a borrower makes the equivalent of 25 years of qualifying monthly payments.
  • Learn more about IBR.

How to apply

Contact the holder of the loan(s).

Income Contingent Repayment (ICR)

ICR calculates the monthly payments based on the borrower's adjusted gross income (and your spouse's income, if you're married), family size and the total amount of his/her eligible loan debt.

Your financial situation

As the borrower, you are worried about the monthly payments and need some flexibility.

Eligible loans

Direct Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Consolidation that includes a Parent PLUS Loan

The following Direct Loans are NOT eligible for this payment plan: Parent PLUS and PLUS Consolidation.

FFELP Loans

FFELP Loans are NOT eligible for this payment plan.

Monthly payments
  • Based on the borrower's adjusted gross income (and the spouse's income, if married), family size and the total amount of the eligible loan debt.
  • Will initially be at least the interest that accrues each month until the official payment amount is calculated.
  • Are recalculated annually (visit the ICR Calculator on Student Aid on the Web).

Things to consider
  • Requires a borrower to provide documentation annually.
  • Maximum repayment period is 25 years.
  • Offers loan forgiveness after 25 years once he/she makes the equivalent of 25 years of qualifying monthly payments.
  • Learn more about ICR.

How to apply

Contact the holder of the loan(s).

Income Sensitive Repayment

The monthly payments are based on the borrower's total monthly gross income and a borrower must re-apply annually. As your income increases or decreases, so do your payments. The maximum repayment preiod is 10 years.

Your financial situation

As the borrower, you are worried about the monthly payments you need some flexibility and you only have FFEL loans.

Eligible loans

Direct Loans

Direct Loans are NOT eligible for this payment plan.

FFELP Loans

  • Stafford Subsidized
  • Stafford Unsubsidized
  • Consolidation
  • Student PLUS
  • Parent PLUS
  • Consolidation that includes a Parent PLUS Loan

Monthly payments
  • Based on your monthly gross income.
  • Must at least cover the interest that accrues each month.

Things to consider
  • A borrower must re-apply annually.
  • More expensive in the long run because the borrower repays the principal at a slower rate.

How to apply

Contact the holder of the loan(s).
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