Federal student loan borrowers can choose from four main repayment plans, each designed for different financial situations and goals.

Standard Repayment Plan:

• 10-year repayment term
• Fixed monthly payments
• Lowest total interest costs
• Best option if you can afford the monthly payments

Income-Driven Repayment (IDR) Plans:

• Payments based on 10-20% of discretionary income
• Repayment terms of 20-25 years
• Remaining balance forgiven after term completion
• Four types available: IBR, ICR, PAYE, and SAVE
• Best for those struggling with monthly payments
• Essential for Public Service Loan Forgiveness (PSLF) qualification

Graduated Repayment Plan:

• 10-year repayment term
• Payments start low and increase every two years
• Good for those expecting income growth
• Higher overall interest costs than standard repayment

Extended Repayment Plan:

• 25-year repayment term
• Available for borrowers owing more than $30,000
• Choose fixed or graduated payments
• Lowest monthly payments but highest total interest
• No loan forgiveness option

Important Considerations:

• Use the Education Department's Loan Simulator to compare plans
• Lower monthly payments usually mean more interest paid overall
• You can make extra payments on any plan to reduce debt faster
• Income-driven plans require annual recertification
• Consider your career plans and eligibility for loan forgiveness

Special Circumstances:

• Temporary payment pauses available through deferment or forbearance
• $0 payments possible under IDR plans if income is low enough
• PSLF requires IDR or standard repayment plan enrollment
• Private student loans have different repayment options

Remember to evaluate your financial situation and long-term goals when choosing a repayment plan. You can change plans as your circumstances change.

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