Repayment Options

Repayment Plan Eligible Loans Monthly Payment and Time Frame Quick Comparison
Standard Repayment Direct Subsidized and Unsubsidized Loans
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

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

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 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

Parent PLUS 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.