Repayment Plan

Eligible Loans

Monthly Payment and Time Frame

Quick Comparison

Standard Repayment

Direct Subsidized and Unsubsidized Loans

Direct Parent PLUS Loans

Fixed payments, at $50 per month


Up to 10 years

Pay less interest over time

Graduated Repayment

Direct Subsidized and Unsubsidized Loans
 
Direct Parent PLUS Loans

Graduated payments, begin lower and increase, usually every two years

Up to 10 years

Pay more interest over time than standard plan

Extended Repayment

Direct Subsidized and Unsubsidized Loans

Direct Parent PLUS Loans

Payments may be fixed or graduated. Must have more than $30,000 in Direct or Parent PLUS loans

Up to 25 years

Monthly payments are lower than the standard plan

Income-Based Repayment (IBR)

Direct Subsidized and Unsubsidized Loans

Maximum monthly payments are 15% of discretionary income; payments change as income changes

Up to 25 years

Monthly payments are lower than standard plan; Pay more interest over time than standard plan; After 25 years of monthly payments, the unpaid portion will be forgiven

Pay As You Earn Repayment

Direct Subsidized and Unsubsidized Loans

Maximum monthly payments will be 10% of discretionary income; payments change as income changes

Up to 20 years

Monthly payments are lower than standard plan; Pay more interest over time than standard plan; After 20 years of monthly payments, the unpaid portion will be forgiven

Income-Contingent Repayment

Direct Subsidized and Unsubsidized Loans

Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans; Payments changes as income changes

Up to 25 years

Monthly payments are lower than standard plan; pay more interest over time than standard plan; after 20 years of monthly payment, the unpaid portion will be forgiven

Income-Sensitive Repayment

Direct Subsidized and Unsubsidized Loans

Monthly payment is based on annual income; payments change as your income changes

Up to 10 years

Monthly payments are lower than standard plan; Each lender formula for determining the monthly payment amount under this plan can vary.

Revised Pay As You Earn (REPAYE) Repayment

Direct Subsidized and Unsubsidized Loans

Maximum monthly payments will be 10% of discretionary income; payments change as income changes

Up to 20 years

Monthly payments are lower than standard plan; Pay more interest over time than standard plan; After 20 years of monthly payments, the unpaid portion will be forgiven; *amount forgiven may be subject to federal income tax*