Repayment Plans

Plans based on income

These plans are based on your federal student loan debt (in some cases your spouse’s), adjusted gross income and family size. They often result in a lower monthly payment, and in some cases, the loan balance may be forgiven. Warning – Longer loan terms may result in higher interest costs over the life of the loan. Visit the Federal Student Aid Repayment Estimator for more information.

Plans based on the length of time loan is in repayment

These plans generally take less time to pay off, saving on the cost of interest. Monthly payments may be higher than income-driven repayment options.

Contact us today to discuss these options, and find out which one will work best for you and your individual circumstances. We can even help you fill out the paperwork.

Call us at 866-810-3572.

Repayment Plan Summary

Repayment Plan Loan Programs Loan Term Eligibility Payments Advantages Helpful Information
Standard Repayment Direct Loans & FFELP 10 Years (up to 30 years if consolidated) You will be placed on this plan if you do not select another plan Fixed monthly payments This is the fastest and least expensive plan based on interest paid This will be the plan you are placed on if you do not select another plan
Graduated Repayment Direct Loans & FFELP 10 Years Upon request Payments start low, increase every 2 Years Works well if you expect your income to increase over time
  • Increasing monthly payment amounts over time
  • The amount due each month must cover your interest
Extended Repayment Direct Loans & FFELP Up to 25 Years Must have more than $30,000 in FFELP or Direct Loans Fixed or graduated payments Lower monthly payments over a longer time frame You will generally pay more interest on this plan due to the longer repayment term
Income-Based Repayment (IBR) Direct Loans & FFELP* 25 Years (20 years for new borrowers as of 7/1/2014), any remaining balance may be forgiven
  • Must demonstrate need based on your total federal student loan debt, adjusted gross income and family size
  • Your calculated payment must be less than what you would pay under the Standard (10-year) Repayment plan
Monthly payment generally set at 15% of discretionary income (10% for new borrowers as of 7/1/2014)
  • A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, your monthly payment will cap at the 10-year payment
  • Interest subsidy may apply
  • May also be used with the Public Service Loan Forgiveness Program
Pay as You Earn Repayment (PAYE) Direct Loans only* 20 Years, any remaining balance may be forgiven
  • Must demonstrate need based on your total federal student loan debt, adjusted gross income and family size
  • Your calculated payment must be less than what you would pay under the Standard (10-year) Repayment plan
Monthly payment generally set at 10% of discretionary income
  • A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, your monthly payment will cap at the 10-year payment
  • May also be used with the Public Service Loan Forgiveness Program
Revised Pay as You Earn Repayment (REPAYE) Direct Loans only* 20 years (undergraduate loans), 25 years (graduate or professional loans), any remaining balance may be forgiven Based on your adjusted gross income, family size and total federal student loan debt Monthly payment generally set at 10% of discretionary income
  • A monthly payment amount based on income
  • Interest subsidy may apply
  • May also be used with the Public Service Loan Forgiveness Program
Income-Contingent Repayment (ICR) Direct Loans only* 25 Years, any remaining balance may be forgiven Based on your adjusted gross income, family size and total federal student loan debt Monthly payments set at the lesser of 20% of discretionary income or a percentage (based on income) of payment on a Standard Plan with a 12-year repayment period
  • Interest subsidy may apply
  • May also be used with the Public Service Loan Forgiveness Program
Income-Sensitive Repayment FFELP only 5 Years, then returns to Standard or Graduated Based on your gross monthly income Lowers payments for 12 months at a time Payments are affordable based on your gross monthly income Annual recertification of gross monthly income

*Additional eligibility requirements may apply. Parent PLUS Loans do not qualify for IDR Plans. Borrowers with Parent PLUS loans may consolidate and request ICR.