Debt-Driven Repayment Options

With debt-driven repayment plans, your monthly payment is determined by the amount of your total debt, your interest rate and the repayment term you select. Generally, these plans are ideal for borrowers with higher incomes in relation to their debt or those who aim to pay off their debt as quickly as possible.

Standard Repayment

Eligible Loans 
Loans are made under the Federal Direct Loan and Federal Family Education Loan Programs are eligible for the Standard Repayment plan.

Eligible Borrowers 
Any borrower with eligible student loans qualifies for Standard Repayment

Monthly Payment Amount 
Your monthly payment amount is determined by your total debt, interest rate and length of repayment. Monthly payments will be the same each month and includes both principal and interest on the balance of your loan. The minimum payment amount is $50, but your actual payment amount and repayment period will depend on the total amount owed.

Repayment Timeframe 
10 years

Important Notes 
The Standard Repayment plan is the default repayment plan. Payments under the Standard Repayment plan will be higher than other repayment options but will result in the lowest total interest paid over the life of the loan.

There is no negative amoritization with the Standard Repayment plan-a situation that occurs when payments on a loan are less than the interest that accrues.

Graduated Repayment

Eligible Loans 
Loans made under the Federal Direct Loan and Federal Family Education Loan Programs are eligible for the Graduated Repayment plan.

Eligible Borrowers 
Any borrower with eligible student loans qualifies for Standard Repayment.

Monthly Payment Amount 
Your monthly payment amount is determined by your total debt, interest rate and length of repayment. Monthly payments will begin lower and increase every two years throughout the repayment term. The payment amount will be the same each month and includes both principal and interest on the balance of your loan. The minimum payment amount is $50, but your actual payment amount and repayment period will depend on the total amount owed.

Repayment Timeframe 
10 years

Important Notes 
Graduated Repayment is best suited for those who anticipate steady increases in income, but also need a low intitial payment. There is no negative amortization with the Graduated Repayment plan.

Extended Repayment

Eligible Loans 
Loans made under the Federal Direct Loan and Federal Family Education Loan Programs are eligible for the Extended Repayment plan.

Eligible Borrowers 
Borrowers who have more than $30,000 of loans in either the Federal Direct Loan or Federal Family Education Loan program are eligible for Extended Repayment.

Monthly Payment Amount 
Your monthly payment amount is determined by your total debt, interest rate and length of repayment. Monthly payments under Extended Repayment are either fixed or graduated.

Extended (Fixed) - Under the fixed option, the repayment amount is the same each month over the 30 years.

Extended (Graduated) - Under the graduated option, payment amounts will vary throughout this period; they will start lower, then increase by designed amounts at designated intervals (typically every two years)

Repayment Timeframe 
25 years

Important Notes
There is no negative amortization under the Extended Repayment plan.