Lower Your Payment With a New Repayment Plan
Step-by-Step Tutorial on How to Lower Your Payments
Need a lower monthly payment? Want to make sure your student loan payment best fits your budget? Many repayment plans are available, and we can help you determine which is best for your situation.
In general, unless you are having trouble making payments, you should explore the Standard and Extended Repayment Plans.
Having difficulty making payments and want to see how a different repayment plan could potentially lower your payment? Log in to your account and click Lower My Payments on the left to try our interactive calculators. Just enter your data and see how the numbers stack up! Of course, you can also call us 24/7 at 888.486.4722.
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See how your Repayment Plan options stack up. This PDF spells out eligibility, loan terms, advantages, and other good-to-know details.
Standard Repayment Plan
The most common repayment plan is Standard Repayment. It spreads equal payments over 10 years. Generally, this is the most economical repayment plan, and it is set up for everyone who is about to begin making payments but has not yet selected a different repayment plan option.
On a Graduated Repayment Plan, payments start low and gradually increase over the years, making this a potentially wise choice for young professionals who expect to earn more money as they advance in their careers. Payment amounts increase every two years until the loan balance is paid in full. You will pay more interest on this plan than on the Standard Repayment Plan.
Do you have more than $30,000 in outstanding FFELP or Direct Loans? Then the Extended Repayment Plan may be for you. This plan makes monthly payments more affordable, but it will take a longer amount of time to pay off the loan (up to 25 years), and you will pay more interest. Under the Extended Repayment Plan, you may choose standard payments (equal payments over the payment term) or graduated payments (payments that increase every two years).
For FFELP loans only, this plan denotes annual adjustment to your minimum monthly payment, based on your monthly gross income. You may choose this plan for up to five years, after which your account will defer to either the Standard or Graduated Repayment Plan.
If you need a more affordable monthly payment amount tailored to your income, an income-driven repayment plan could help. Each of the four plans has unique qualifications for eligibility, and will affect your regular monthly payment amount in different ways. The Income-Contingent Repayment (ICR) Plan, Pay As You Earn (PAYE) Repayment Plan and Revised Pay As You Earn (REPAYE) Repayment Plan are for Direct Loans only. The Income-Based Repayment (IBR) Plan is for both FFELP and Direct Loans.