Understanding how to repay your students loans can save you both time and money! Review the different repayment plans carefully to find what option works best for you.
Federal Loans (Direct Unsubsidized and Graduate PLUS Loans)
Although you may select or be assigned a repayment plan when you first begin repaying your loans, you can often change repayment plans at any time for free.
We recommend using the Repayment Estimator to get an early look at which plans you may be eligible for and to see real estimates of monthly and overall payments.
Standard Repayment Plan: payments are a fixed amount. Time frame is up to 10 years or up to 30 for consolidation loans. An example would be a monthly payment of $250. You'll pay less over time with this plan.
Graduated Repayment Plan: payments are lower at first, and then increase, usually every two years for up to 10 years or up to 30 years for a consolation loan. An example would be monthly payments of $50 while in school, then monthly payments of $175 for two years, then $390 for two years, etc. You'll pay more over time with this plan.
Extended Repayment Plan: payments may be fixed or graduated for up to 25 years. An example would be a flat $250 per month or a graduated $25 per month for 12 months, then $175 for 24 months, etc. You'll pay more over time with this plan.
Revised Pay as You Earn Repayment Plan (REPAYE): payments will be 10% of your discretionary income and are recalculated each year based on income and family size. Any outstanding balance on your loan will be forgiven if you haven't repaid in full after 20-25 years, which will be taxed for any amount forgiven. You'll usually pay more over time with this plan.
Pay as You Earn Repayment Plan (PAYE): payments will be 10% of your discretionary income and are recalculated each year based on income and family size. You must have a high debt relative to your income. Any outstanding balance on your loan will be forgiven if you haven't repaid in full after 20 years, which will be taxed for any amount forgiven. You'll usually pay more over time with this plan.
Income-Based Repayment Plan (IBR): payments are 10-15% of discretionary income and will be recalculated each year based on income and family size. You must have a high debt relative to your income. Any outstanding balance on your loan will be forgiven if you haven't repaid in full after 20-25 years, which will be taxed for any amount forgiven. You'll usually pay more over time with this plan.
Income-Contingent Repayment Plan (ICR): payments will be the lesser of 20% of discretionary income or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. Payments are recalculated each year based on your income, family size, and total amount of Direct Loans. Any outstanding balance on your loan will be forgiven if you haven't repaid in full after 25 years, which will be taxed for any amount forgiven. You'll usually pay more over time with this plan.
Please contact your loan servicer directly to discuss your repayment plan options!
Private Loans
Since each loan servicer has different options for repayment, please contact your loan servicer directly to discuss repayment options.