Legal action against the SAVE Plan has limited student loan repayment options. The situation is developing, so some info on this site may be out-of-date. You’ll find our latest update on SAVE here and news on all IDR plans here.
Switch Repayment Plans
What are my student loan repayment options?
There are more than 43 million student loan borrowers in the United States. Each of them has different financial pressures and goals. To help meet their diverse needs, Federal Student Aid offers a wide spectrum of repayment plans.
If you’re struggling to afford your student loan monthly payment, changing repayment plans may help. Different plans can dramatically lower your payments. Some offer monthly payments as low as zero dollars. It will take time to research and switch plans, but the benefits are worth it.
Find the Best Plan for You
Three methods for finding a repayment plan that matches your needs.
Evaluate a Repayment Plan
Learn how to review a plan without becoming overwhelmed by details.
Change Repayment Plans
A step-by-step guide to making the switch.
Guide to Repayment Plans
An overview of plans offered by the Department of Education.
The New SAVE Repayment Plan
In July 2023, the Department of Education announced the new SAVE Repayment Plan. It offers multiple advantages over other IDR plans including lower monthly payments, a shorter path to loan forgiveness, and reduced paperwork. If you’re interested in an income-driven plan, be sure to check this one out. Learn more about the SAVE Plan here.
Find the Best Plan for You
There are several repayment plans, but only a few match your needs. Below are three methods to identify a short list of candidates. You may want to use two or more to ensure you find the best options. Once you have your list, choosing a winner should be much easier.
- Define your needs and identify your options – The three short exercises on Set My Repayment Goals will help you describe what you want from a repayment plan. Use the results to find compatible plans on Repayment Options and research the most likely candidates. How to Evaluate a Repayment Plan provides guidance on how to review a plan without being overwhelmed by detail.
- Use the Loan Simulator – StudentAid.gov offers a Loan Simulator that uses your existing loan data to suggest repayment plans and estimate monthly payments. If you don’t have an account on StudentAid.gov, follow these instructions to create one.
- Get student loan counseling for FREE – You can contact one of the Borrower Advocates at Student Connections to get expert advice. This service is paid for by hundreds of schools across the country and is free to you. Contact us here.
How to Evaluate a Repayment Plan
Each plan has its own set of terms and conditions, so it’s easy to be overwhelmed by detail. You can fight distraction by focusing on the three most important factors of every plan.
Monthly Payment
Some plans offer low monthly payments as a key feature. In addition, payments can be fixed (meaning they never change) or may increase over the life of the loan.
Repayment Period
This is the time it will take you to pay back the loan if you don’t miss any payments. Normally it’s 10, 20 or 25 years, but there are some exceptions.
Total Repayment Cost
In general, low monthly payments and a longer repayment period will increase the total cost of repaying your loans. You essentially buy the right to make smaller payments and take more time to pay. Those benefits may be worth the larger price tag, but you should still be aware of what you’re paying for.
Next, take note of any eligibility requirements. Answer these questions:
- Does the plan cover the type of loans you have? If not, can you consolidate your loans into a loan type that is covered?
- Are there any income restrictions?
- Are there any restrictions on the minimum amount of money borrowed?
If you don’t meet the conditions required by the loan, you can remove it from your list of possibilities. StudentAid.gov offers a good overview of the qualifications for each repayment plan.
How to Change Repayment Plans
If you want to switch to one of the Income-Driven Repayment (IDR) plans, you must fill out an application. Once it’s approved, the Department of Education will contact your loan servicer directly. You can apply here.
To switch to one of the other repayment plans, you must contact your loan servicer. Plan ahead. Loan servicers usually have limited call center hours and hold times may be long.
Before you contact your loan servicer, take time to gather information and explore your options. This should reduce the chance you’ll need to make multiple calls. Take these steps before you call:
- Create an account on StudentAid.gov – Creating an account gives you to access your loan data and the most exact results possible from the Loan Simulator. If you don’t have an account on StudentAid.gov, follow these instructions.
- Double-check your loan servicer – Since 2019, several loan servicers have left the industry and new companies have replaced them. Your loan(s) may have been assigned to a different servicer. You can learn who your current loan servicer is by logging into your account on StudentAid.gov.
- Create an account on your loan servicer’s website – Your servicer may have more up-to-date loan information than StudentAid.gov. They also may provide additional resources. If you don’t have an account, follow these instructions.
- Explore your options – When talking with your loan servicer, you need to communicate your needs and goals in concrete terms. We suggest completing at least one of the actions in Find the Best Plan for You before contacting your servicer.
Guide to Repayment Plans
This section offers a surface-level overview of each repayment plan. These summaries are meant as a starting point. Do not commit to a plan before doing further research at the links provided in the text.
Standard Repayment
This is the default plan for all borrowers when they leave school. If you leave the Standard Repayment Plan, you can return to it in the future.
Monthly Payment
Higher monthly payments than most other plans. Payments are fixed throughout the life of the loan.
Repayment Period
10 years
Total Repayment Cost
Offers the lowest total repayment costs compared to all other plans.
Details: If you can afford the monthly payments, you’ll pay off your loans faster and cheaper than any other plan. Learn more about the Standard Repayment Plan here.
Income-Driven Repayment (IDR) Plans
IDR plans offer payments based on your annual income and family size. If you need a lower monthly payment, put IDR plans at the top of your research list.
Monthly Payment
The lowest potential monthly payments available. Your payment amount changes annually, rising and falling in line with your income. Some IDR plans charge 10% of your discretionary income and others charge 20%. Low-income borrowers may qualify for zero-dollar payments on some plans.
Repayment Period
10 to 25 years (depending on multiple factors)
Total Repayment Cost
IDR Plans cost more than the Standard Repayment Plan. Typically, it is less expensive than an Extended Repayment Plan.
Details: There are four IDR plans: Saving on a Valuable Education (SAVE – formerly known as the REPAYE Plan), Pay as You Earn (PAYE), Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR). In addition to lower payments, each includes loan forgiveness once the repayment period ends and the borrower has made enough qualifying payments. Learn more about IDR plans here.
Graduated Repayment
This plan slowly increases the amount of your monthly payments over the life of your loan.
Monthly Payment
Your payments start small but grow every two years. Eventually they’ll be higher than monthly payments on a Standard Repayment Plan.
Repayment Period
Normally 10 years but can extend up to 30 years for consolidation loans.
Total Repayment Cost
Graduated Repayment will cost you more in interest than the Standard Repayment Plan. Normally, it is less expensive than Extended plans.
Details: Graduated repayment is available to all borrowers and loan types. This plan may be a good choice if you need smaller payments now but expect your income to grow substantially over the next 10 years. Learn more about Graduated Repayment here.
Extended Repayment
This plan lowers your monthly payment by stretching your repayment period beyond the standard 10 years.
Monthly Payment
Your payments will be much lower than either a Standard or Graduated Plan and could be higher than an IDR plan. You can choose a fixed payment amount or one that starts very low and grows over the life of the loan.
Repayment Period
20 or 25 years (depending on your choices)
Total Repayment Cost
Typically, more costly than Standard, Graduated and IDR plans.
Details: To qualify for Extended Repayment, you must have borrowed at least $30,000. Learn more about Extended Repayment here.