What to Know About Student Loans

Loan Repayment Plans

College is fun. Paying bills isn’t. But, it’s an important part of the process. Fortunately, you can choose the repayment plan that fits your situation. There are several options.

Standard
You pay the same amount each month for 10 years.
Graduated
Payments gradually increase over time. Translation: lower payments now; larger payments later. But, watch out for added interest.
Extended
Only an option if you owe $30,000 or more. Extends your repayment term to 25 years. Again, watch out for added interest.
Income-driven
There are several options that help you stay in repayment even when you’re not making much money. Eligibility requirements and repayment terms vary.
- Income-based
  Must be able to document financial hardship; includes some loan forgiveness options. Based on 10% of discretionary income with terms up to 20 years.
- Income-contingent
  Only available for FDLP (Direct) loans. Based on discretionary income and terms go up to 25 years; includes loan forgiveness options.
- Pay As You Earn (PAYE)
  Only available for FDLP (Direct) loans. Proof of financial hardship is a requirement. Based on 10% of discretionary income; payments increase as you earn more money. Terms up to 20 years with loan forgiveness options available.
- Revised Pay As You Earn (REPAYE)
  Only available for FDLP (Direct) loans. Based on 10% of discretionary income; payments increase as you earn more money. Terms up to 25 years with loan forgiveness options available.
- Income-sensitive
  Only available for students with FFELP loans. Payment is based on your annual income with terms up to 15 years.