7 Repayment Plans for Federal Student Loan

1. Standard Repayment

This is the default repayment plan for borrowers who don’t opt for another. Under the Standard Repayment program, you’ll pay a fixed monthly amount for 10 years.  

2. Graduated Repayment

The Graduated Repayment plan is similar to the standard option, but with one small change: Rather than a fixed monthly payment, your payments start small and gradually increase every two years. 

3. Extended Repayment

If you have more than $30,000 in Direct Loans, you may be eligible for Extended Repayment. Those who have substantial debt in subsidized loans, unsubsidized loans, PLUS loans, or consolidation loans could qualify. 

4. Revised Pay as You Earn (REPAYE)

The REPAYE option is an income-driven plan that sets your monthly payment at a percentage of your income. Any borrower with an eligible loan (including Direct Subsidized and Unsubsidized Loans, and PLUS loans) can apply for this repayment plan.  

6. Income-Based Repayment (IBR)

If PAYE sounds too difficult to qualify for, IBR might be a better fit. Under this plan, you’ll pay either 10 or 15 percent of your income for 20 to 25 years, depending on when you took out your loans. 

7. Income-Contingent Repayment (ICR)

Under ICR, you’ll pay either 20 percent of your discretionary income or the amount you would pay with a fixed payment over 12 years — whichever is less. Repayment takes place over 25 years, after which any remaining balance will be forgiven.  

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