Repayment Options

Things to know about repayment

The federal government offers several repayment plans. Your options depend on whether your federal loans came directly from the U.S. Department of Education (Direct Loans) or from a state agency or bank.

Your monthly payment and how long it takes you to repay your loans depends on the plan you choose.

Remember that the federal government can change repayment plans at any time. Contact your loan servicer to see what options you have.

Federal student loan repayment options are:

Standard Repayment

  • You pay a fixed amount each month.
  • You payment amount will change each year if you have a variable interest rate on your loan.
  • You must pay at least $50 per month.
  • You have up to 10 years to repay your loans.
  • Your monthly payment may be higher than under other plans.

Extended Repayment

  • You can’t owe on a federal student loan taken out before October 7, 1998.
  • You must owe more than $30,000 in federal student loans.
  • Your payments are fixed or graduated.
  • You have up to 25 years to repay your loans.

Graduated Repayment

  • Payments start small and increase over time.
  • No installment can be more than three times greater than any other installment.

Pay As You Earn (PAYE)

  • Your payment is based on your discretionary income (the difference between your adjusted gross income and 150% of the poverty guideline for your family size and state of residence).
  • Loans must have been made after September 30, 2007, and you must have received a loan disbursement after September 30, 2011.
  • Your loan repayment term is 20 years.

Parent Direct PLUS Loans are not eligible for Pay As You Earn.

Revised Pay As You Earn (REPAYE)

  • Your monthly payment is 10% of your discretionary income.
  • Your loan repayment term is 20 or 25 years.

Parent PLUS Loans are not eligible for Revised Pay As You Earn.

Income-Based Repayment (IBR)

  • Your monthly payment is capped based on your income and family size and must be less than the monthly standard repayment amount.
  • Your repayment period is up to 20 years if you have no student loans taken out before July 1, 2014. If you do, you have up to 25 years to repay your loans.

Parent PLUS or Consolidation Loans that repaid a parent PLUS Loan are not eligible for IBR.

Income-Contingent Repayment (ICR)

  • Your monthly payment is based on your family size, adjusted gross income and total borrowed.
  • Your monthly payment is the lesser of (1) the amount you would pay if you repaid the loan in 12 years, multiplied by a percentage based on your annual income or (2) 20% of your monthly discretionary income.
  • The unpaid interest will be capitalized once a year (no more than 10% of the total you owed when you entered repayment).
  • You have up to 25 years to repay your loans.

Parent Direct PLUS Loans are not eligible for ICR.