Federal Loan Repayment
For Federal Direct Subsidized, Unsubsidized, and Grad PLUS loans, students are not required to make payments while enrolled at least half time. Required repayment begins after the student's six-month grace period. The grace period goes into effect on the last day of the semester for a graduating student, on the last day of enrollment for a student who withdraws, or the date on which the student drops to less than half-time enrollment. Federal Perkins Loans have a nine-month grace period. Direct PLUS loans for parent borrowers enter repayment when they are fully disbursed, but parents may defer making payments while their child is enrolled in school at least half-time and for an additional six months after their child graduates, withdraws, or drops below half-time enrollment.
All borrowers are assigned to a federal loan servicer and will make payments to their loan servicer. Borrowers may determine the name and contact information for their loan servicer at studentaid.gov. Borrowers may also use the Repayment Estimator to help determine their monthly payment amount based on their specific circumstances.
Federal Direct Loans have a number of repayment plans with repayment periods ranging from 10 to 30 years. Summary information on each repayment plan is listed below. Links are provided for more detailed information.
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Standard Repayment Plan
Under the Standard Repayment Plan, borrowers make fixed monthly payments for up to 10 years. Monthly payments will vary based on loan debt but will be at least $50.
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Extended Repayment Plan
Under the Extended Repayment Plan, borrowers with at least $30,000 in outstanding Direct Loans choose between fixed or graduated monthly payments for up to 25 years.
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Graduated Repayment Plan
Under the Graduated Repayment Plan, borrowers will make monthly payments for up to 10 years, with payments starting lower at first and increasing usually every two years.
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Income Based Repayment (IBR) Plan
Under the Income Based Repayment Plan, borrowers who qualify will have payments limited to 10 to 15% of discretionary income as defined under this repayment plan. Borrowers may qualify for debt cancellation under this repayment plan.
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Pay As You Earn Repayment (PAYE) Plan
Under the Pay As You Earn Repayment Plan, borrowers who qualify for this plan will have payments limited to 10% of discretionary income as defined under this repayment plan. To be considered for this plan, a borrower must have had no federal loan debt prior to October 1, 2007 and must have received a loan disbursement on or after October 1, 2011 in addition to meeting other repayment requirements. Borrowers may qualify for debt cancellation under this repayment plan.
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Revised Pay As You Earn Repayment (Re-PAYE) Plan
Under the Revised Pay As You Earn Repayment Plan, borrowers who qualify for this plan will have payments limited to 10% of discretionary income as defined under this repayment plan. Any Direct Loan borrower with an eligible loan type may choose this plan. Borrowers may qualify for debt cancellation under this repayment plan.
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Income Contingent Repayment (ICR) Plan
Under the Income Contingent Repayment Plan, eligible borrowers pay the lower of the monthly payment that would be made under a 12 year repayment plan or 20% of the borrower’s discretionary income as defined under this repayment plan. Borrowers may qualify for debt cancellation under this repayment plan.
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Income-Sensitive Repayment (ICR) Plan
Under the Income-Sensitive Repayment Plan, payments increase or decrease based on your annual income.