Repayment Plan Options & Programs
The Department of Education offers several programs that can help you with your monthly student loan payment. Knowing which plans are available is half the battle. We help you better understand and complete the paperwork for the rest. When you see a plan you like, let us know, and we can help you file for your favorite.
“My payments aren’t an issue, but I want to pay off my loans asap!”
The Standard Plan could be for you. It allows borrowers to pay off their debt sooner rather than later.
| Pros | Cons |
|---|---|
| ✅ Fastest repayment plan available to pay off your debt. ✅ Fixed monthly payments that do not change for the duration of the term. ✅ Saves you the max in interest charges. ✅ Any payment above the minimum goes toward your principal. ✅ Your debt is paid off in 10 years if unconsolidated. | ❌ High monthly payments. ❌ If consolidated, your payoff date may extend from 12 to 25 years depending on your balance. ❌ No loan forgiveness options under this plan. |
“I just graduated so I don’t have a ton of cash right now, but I should have more in the future.”
The Graduated Plan allows you to start with lower payments and increase over time.
| Pros | Cons |
|---|---|
| ✅ Low initial payments that increase every two years. ✅ Still offers a relatively quick payoff timeline. | ❌ First two years of payments only cover interest. ❌ More interest paid over time compared to The Standard. ❌ No loan forgiveness under this plan. |
“I need long-term, low monthly payments.”
The Extended Plan gives you more time to repay your loan, lowering monthly bills.
| Pros | Cons |
|---|---|
| ✅ Lower monthly payments. ✅ Option for fixed or graduated payments. ✅ Gives you up to 25 years to repay. | ❌ More interest paid over time. ❌ Only available if you have $30,000+ in federal Direct Loans. ❌ No forgiveness options under this plan. |
“I had a tough year; I need a lower payment until I can get back on my feet.”
The Income-Based Plan adjusts your payment based on income and family size.
| Pros | Cons |
|---|---|
| ✅ Lower payments based on income and family size. ✅ Potential forgiveness after 20–25 years or after 10 under PSLF. | ❌ Takes up to 25 years to pay off (unless forgiven sooner). ❌ More interest paid over time. ❌ Requires annual recertification. ❌ Not everyone qualifies. |
“I don’t have a hardship, but I still want flexible payments.”
The Income-Contingent Plan is designed for borrowers without hardship qualifications.
| Pros | Cons |
|---|---|
| ✅ Flexible payments based on income and family size. ✅ Forgiveness possible after 20–25 years or under PSLF. | ❌ Can take up to 25 years to pay off. ❌ You pay more interest than The Standard Plan. ❌ Requires annual recertification. ❌ Spouse’s income is considered (even if filing separately). |
“20% of my discretionary income is still a bit much. Can I lower it even more?”
PAYE and REPAYE Plans offer lower income-based payment options.
PAYE (Pay As You Earn): Based on 10% of discretionary income.
| Pros | Cons |
|---|---|
| ✅ Lowest payments possible (or $0 in some cases). ✅ Forgiveness possible after 20 years or 10 under PSLF. | ❌ Must have borrowed after October 1, 2007. ❌ Longer repayment term = more interest. ❌ Requires annual paperwork. |
REPAYE (Revised Pay As You Earn): Also 10% of discretionary income, but available to all borrowers.
| Pros | Cons |
|---|---|
| ✅ No loan date restrictions—everyone qualifies. ✅ Interest subsidies available after 3 years. ✅ Forgiveness possible after 20–25 years. | ❌ No payment cap. ❌ Spouse’s income always considered. ❌ Annual recertification required. ❌ Forgiveness after 20 years (undergrad) or 25 (grad loans). |
“Wait… my student debt could be FORGIVEN?”
Yes! Qualified borrowers may have some or all of their remaining debt forgiven through various programs like PSLF or income-driven repayment plans.
If you’ve consistently made payments for 10, 20, or 25 years, you could be eligible. Public service professionals like nurses or teachers may also qualify.
“I’m not sure which plans or forgiveness options I qualify for?”
No worries — that’s why we’re here. Our advanced tools and loan experts will help you choose the best plan, whether you’re looking for faster payoff, lower payments, or loan forgiveness.