Repayment Plans and Calculators
When it comes time to start repaying your student loan(s), you can select a repayment plan that is right for your financial situation. Generally, you'll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose.
This is the default payment plan. You pay a fixed amount each month ntil your loans are paid in full. Your monthly payment will be at least $50, and you'll have up to 10 years to repay your loans.
To calculate you estimated loan payments, go to the Standard Repayment plan calculator
Under the extended plan, you will pay a fixed annual or graduated repayment amount over a period not to exceed 25 years. You must have more than $30,000 in outstanding federal loans to qualify. Your fixed monthly payment is lower than it would be under the Standard Plan, but you will ultimated pay more for your loan because of the interest that accumulates during the longer repayment period.
This is a good plan if you will need to make smaller monthly payment.
To calculate your estimated loan payments, go to the Extended Repayment plan calculator.
With this plan, your payments start out low and increase every two years. The length of your repayment will be up to 10 years. If you expect your income to increase steadily over time, this plan may be right for you.Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.
To calculate your estimated loan payments, go to the Graduated Repayment plan calculator.
Income Based Repayment (IBR) Effective July 1, 2009
Under Income Based Repayment, the required monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly payment amount under IBR will be less than the monthly amount calculated under a 10 year standard repayment plan. If you repay under the IBR plan for 25 years and meet other requirements you may have any remaining balance of your loan(s) cancelled. Additionally, if you work in public service and have reduced loan payments through IBR the remaining balance after 10 years in a public services job could be cancelled. Please read the IBR fact sheet.
Income Contingent Repayment (IRC) (Direct Loans Only)
Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you are married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:
1. The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income,
2. 20 percent of your monthly discretionary income.
If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.
To calculate your estimated loan repayments, go to the ICR plan calculator.