Repayment Plan Guide

Student Loan & Savings helps borrowers navigate the path to successful repayment and we are committed to keeping students informed. The Repayment Options below detail important information and will help you understand the repayment process for your federal student loans. If you need further details, or clarification on any terms, contact us.

Repayment Plan
Revised Pay As You Earn Repayment Plan (REPAYE)
Qualified Loan Types
  • Direct Loan Borrowers (Subsidized and Unsubsidized)
  • Direct PLUS Loans
  • Direct Consolidation Loans without any PLUS Loans
Payment and Terms
  • Payment capped at 10% of your discretionary income
  • Needs updating of income and family size information even if there are no changes
  • Payments are adjusted and recalculated if income and family size have changed
  • For married couples, both you and your spouse’s income will be considered in the discretionary income calculation
  • Any loan balance remaining will be forgiven after 20 years (undergraduate loans) or 25 years (graduate loans)
Nice To Know
  • This is a good plan for those who wish to apply for PSLF
  • You could pay more over time compared to the 10-year Standard Repayment Plan
  • Income tax may be charged for any outstanding balance forgiven
Repayment Plan
Pay As You EarnRepayment Plan (PAYE)
Qualified Loan Types
  • Usually for new borrowers who took out a federal student loan on or before October 1, 2007
  • Direct Loans (Subsidized and Unsubsidized)
  • Direct PLUS Loans
  • Direct Consolidation Loans without any PLUS Loans
Payment and Terms
  • Payment capped at 10% of your discretionary income, never beyond what you used to pay under the 10-year Standard Repayment Plan
  • Needs updating of income and family size information even if there are no changes
  • Payments are adjusted and recalculated if income and family size have changed
  • For married couples, both you and your spouse’s income will be considered in the discretionary income calculation if filing status is jointly
  • Any loan balance remaining will be forgiven after 20 years
Nice To Know
  • If your loan balance is higher than your income, you may qualify for this IDR
  • This is a good plan for those who wish to apply for PSLF
  • You could pay more over time compared to the 10-year Standard Repayment Plan
  • Income tax may be charged for any outstanding balance forgiven
Repayment Plan
Income-Based Repayment Plan (IBR)
Qualified Loan Types
  • For borrowers whose loans are higher compared to their current student loan balance
  • Direct Loans, both Subsidized and Unsubsidized
  • Stafford Loans, both Subsidized and Unsubsidized
  • PLUS Loans made to students
  • Consolidated loans (Direct or FFEL), that have no Parent Plus Loans
Payment and Terms
  • Payments are computed lesser than around 20% of your discretionary income
  • Needs updating of income and family size information even if there are no changes
  • Payments are adjusted and recalculated if income and family size have changed
  • For married couples, both you and your spouse's income will be considered in the discretionary income calculation if filing status is jointly, or you've decided to pay jointly your Direct Loans with your spouse
  • Any loan balance remaining will be forgiven after 25 years
Nice To Know
  • If your loan balance is higher than your income, you may qualify for this IDR
  • This is a good plan for those who wish to apply for PSLF
  • You could pay more over time compared to the 10-year Standard Repayment Plan
  • Income tax may be charged for any outstanding balance forgiven
Repayment Plan
Income-Contingent Repayment Plan
Qualified Loan Types
  • Direct Loans (Subsidized and Unsubsidized)
  • Direct PLUS Loans
  • Direct Consolidation Loans
Payment and Terms
  • Payments are computed lesser than around 20% of your discretionary income
  • Needs updating of income and family size information even if there are no changes
  • Payments are adjusted and recalculated if income and family size have changed
  • For married couples, both you and your spouse's income will be considered in the discretionary income calculation if filing status is jointly, or you've decided to pay jointly your Direct Loans with your spouse
  • Any loan balance remaining will be forgiven after 25 years
Nice To Know
  • This is a good plan for those who wish to apply for PSLF
  • You could pay more over time compared to the 10-year Standard Repayment Plan
  • Income tax may be charged for any outstanding balance forgiven
  • If you are a parent borrower, you can consolidate your Parent PLUS loans to a Direct Consolidation Loan
Repayment Plan
Standard Repayment Plan
Qualified Loan Types
  • All borrowers are eligible for this plan. This is the 10-year repayment plan that all borrowers are given automatically.
  • Direct Loans
  • PLUS Loans
  • Stafford Loans (Subsidized and Unsubsidized)
  • Consolidation Loans
Payment and Terms
  • Payments are fixed for a period of 10 years until the entire loan is paid off. It can be longer than 10 years, up to 30 years if you have Consolidated Loans.
Nice To Know
  • You get to pay much less over time with this type of repayment plan.
  • Not for those applying for PSLF
  • If you have consolidation loans and it’s under this plan, it’s also qualified for PSLF
Repayment Plan
Graduated Repayment Plan
Qualified Loan Types
  • All borrowers are eligible for this plan. This is the 10-year repayment plan that all borrowers are given automatically.
  • Direct Loans
  • PLUS Loans
  • Stafford Loans (Subsidized and Unsubsidized)
  • Consolidation Loans
Payment and Terms
  • Payments are calculated over a period of 10 years. It starts small and gradually increases every two years, until the entire loan is paid off.
  • It can be up to 30 years for Consolidated Loans.
Nice To Know
  • You pay more compared to the 10-year Standard Repayment Plan.
  • Normally, it’s not a repayment plan recommended for PSLF.
Repayment Plan
Extended Repayment Plan
Qualified Loan Types
  • For those who have Direct Loans with over $30,000 in outstanding balance
  • Direct Loans
  • PLUS Loans
  • Stafford Loans (Subsidized and Unsubsidized)
  • Consolidation Loans
Payment and Terms
  • Payments are either graduated or a fixed amount, to be paid off for 25 years.
Nice To Know
  • Payments are lower compared to Standard and Graduated, but you could pay more with this type of repayment plan.
  • Not for those applying for PSLF
Repayment Plan
Income-Sensitive Repayment Plan
Qualified Loan Types
  • FFEL Program Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
Payment and Terms
  • Payments are base on the borrower’s annual income
  • Term of payment: 15 years
Nice To Know
  • Computed payment may be different depending on the formula used by the lender