There are several different types of repayment plans. Find one that fits your budget.
If you're having difficulty making your monthly payments, you may have options.
Repayment plan comparison calculator
Follow the link below to the U.S. Department of Education's repayment plan comparison calculator and find the payment plan that fits your financial situation.
The repayment plan comparison calculator can help you weigh the benefits and costs of each plan so you can find the right one for you. You may also contact your servicer(s)/lenders(s) to discuss your options. If you don't know who your servicer(s)/lender(s) is, go to the Federal Student Aid (FSA) website, which is the central database for all federal student loan information.
Make it a habit to review your repayment plan every year to make sure it's still a good fit for your financial situation.
Income-driven repayment plans
Income-driven repayment plans may be a good choice if your income is small relative to your student loan debt. The following provides information about four types of income-driven repayment plans.
Income-Based Repayment (IBR)
IBR is a repayment option based on income and family size. For most borrowers, IBR... Read more >
IBR is a repayment option based on income and family size. For most borrowers, IBR payments will be less than 10% of their income. IBR will also forgive any remaining debt after 25 years of qualifying payments, although the Internal Revenue Service may treat any forgiven loan amount as taxable income. Consult a tax professional.
This program may be a good option if you have a Stafford, PLUS or Grad PLUS... Read more >
This program may be a good option if you have a Stafford, PLUS or Grad PLUS loan(s) under the FFELP and want to lower your payments for a relatively brief period of time. With an ISR plan, your servicer(s)/lender(s) determines your monthly payment amount based on your Adjusted Gross Income and will readjust the amount of your payments annually based on your reported earnings.
Key features of ISR:
Your monthly loan payment amount is based on your annual income
As your income increases or decreases, so do your payments
The maximum repayment period is 10 years
You must reapply for ISR each year
Ask your servicer(s)/lender(s) for more information on the ISR plan
ISR is available for FFELP Stafford, PLUS and Grad PLUS loan borrowers
ISR can help you stay current with your payments if you're facing an income shortfall, but if you think you'll need lower payments for more than a year, you may want to consider Extended or Graduated repayment.
With ICR, monthly payments are calculated based on your income, family size and... Read more >
With ICR, monthly payments are calculated based on your income, family size and the total amount borrowed.
If you complete 25 years of repayment under the ICR plan, any remaining debt will be forgiven, although the Internal Revenue Service may treat any forgiven loan amount as taxable income. Consult a tax professional.
Key features of ICR:
ICR is available for Direct Loan Program borrowers of Stafford loans and Grad PLUS loans
Payments are based on income, family size and total federal student loan debt
The payment amount adjusts annually based on your Adjusted Gross Income
Payments do not have to cover interest, but unpaid interest does accrue
Accrued interest caps at 10% of the original loan amount
The federal government subsidizes interest beyond the 10% cap
If you pay the loan early or switch plans, all accrued interest—including federally subsidized interest—is added to the principal
With PAYE, monthly payments are calculated based on your Adjusted Gross Income and... Read more >
With PAYE, monthly payments are calculated based on your Adjusted Gross Income and family size. The monthly payment amount is recalculated annually to reflect changes in your income and family size, and is generally 10% of your discretionary income. Any remaining balance is forgiven after 20 years of payments, or after 10 years under the Public Service Loan Forgiveness Program.
Key features of PAYE:
PAYE is available for Direct Loan Program borrowers (subsidized, unsubsidized, graduate and consolidated)
Your monthly loan payment amount is based on your annual income and family size
Your payment amount may increase or decrease if your income or family size changes from year to year
Standard repayment is generally a 10-year term and 120 payments. If you want smaller monthly payments, Graduated or Extended repayment may work for you, if you are eligible.
Standard repayment
Standard repayment allows you to pay your loan(s) over 10 years in equal monthly... Read more >
Standard repayment allows you to pay your loan(s) over 10 years in equal monthly installments. Because you begin paying down the principal immediately, Standard repayment may cost you less over the life of the loan compared to some other plans.
Key features of Standard repayment:
The same payment amount each month
Minimum $50 payment amount until the loan is paid in full
Maximum 10-year term for Stafford and PLUS loans, with a three-year extension if a loan balance remains because of a variable interest rate
Automatically entered unless a different repayment plan is selected
Graduated repayment is designed for those who have a low salary early in their... Read more >
Graduated repayment is designed for those who have a low salary early in their repayment period, but anticipate higher incomes in the future. Payments start low and gradually increase over time.
Graduated repayment is a compromise between Standard repayment and the higher lifetime costs of Extended repayment.
Key features of Graduated repayment:
Lower monthly payments that increase over time
No payment is more than three times the lowest payment
Payments must cover interest
Maximum 10-year term for Stafford and PLUS loans, with a three-year extension if a loan balance remains because of a variable interest rate
Borrowers with more than $30,000 in FFELP or Direct Loan Program... Read more >
Borrowers with more than $30,000 in FFELP or Direct Loan Program loans—separately, not combined—can lower their monthly payments by extending their payments for up to 25 years. While it does potentially save money in the short-term, Extended repayment may create higher overall costs.
Key features of Extended repayment:
Designed for borrowers with more than $30,000 in student loan debt in a single loan program (i.e., FFEL or Direct Loan)
Lowers monthly payments by extending the loan terms up to 25 years
Fixed or graduated payments
May result in higher costs due to the longer repayment term