Student’s Relief helps borrowers navigate the path to successful repayment and we are committed to keeping students informed. The Repayment Options below detail important information and will help you understand the repayment process for your federal student loans. If you need further details, or clarification on any terms, contact us.
Revised Pay As You Earn Repayment Plan (REPAYE)
Qualified Loan Types
- Direct Loan Borrowers (Subsidized and Unsubsidized)
- Direct PLUS Loans
- Direct Consolidation Loans without any PLUS Loans
Payment and Terms
- Payment capped at 10% of your discretionary income
- Needs updating of income and family size information even if there are no changes
- Payments are adjusted and recalculated if income and family size have changed
- For married couples, both you and your spouse’s income will be considered in the discretionary income calculation
- Any loan balance remaining will be forgiven after 20 years (undergraduate loans) or 25 years (graduate loans)
Nice To Know
- This is a good plan for those who wish to apply for PSLF
- You could pay more over time compared to the 10-year Standard Repayment Plan
- Income tax may be charged for any outstanding balance forgiven
Pay As You EarnRepayment Plan (PAYE)
- Usually for new borrowers who took out a federal student loan on or before October 1, 2007
- Direct Loans (Subsidized and Unsubsidized)
- Direct PLUS Loans
- Direct Consolidation Loans without any PLUS Loans
- Payment capped at 10% of your discretionary income, never beyond what you used to pay under the 10-year Standard Repayment Plan
- Needs updating of income and family size information even if there are no changes
- Payments are adjusted and recalculated if income and family size have changed
- For married couples, both you and your spouse’s income will be considered in the discretionary income calculation if filing status is jointly
- Any loan balance remaining will be forgiven after 20 years
- If your loan balance is higher than your income, you may qualify for this IDR
- This is a good plan for those who wish to apply for PSLF
- You could pay more over time compared to the 10-year Standard Repayment Plan
- Income tax may be charged for any outstanding balance forgiven
Income-Based Repayment Plan (IBR)
- For borrowers whose loans are higher compared to their current student loan balance
- Direct Loans, both Subsidized and Unsubsidized
- Stafford Loans, both Subsidized and Unsubsidized
- PLUS Loans made to students
- Consolidated loans (Direct or FFEL), that have no Parent Plus Loans
- Payments are computed lesser than around 20% of your discretionary income
- Needs updating of income and family size information even if there are no changes
- Payments are adjusted and recalculated if income and family size have changed
- For married couples, both you and your spouse’s income will be considered in the discretionary income calculation if filing status is jointly, or you’ve decided to pay jointly your Direct Loans with your spouse
- Any loan balance remaining will be forgiven after 25 years
- If your loan balance is higher than your income, you may qualify for this IDR
- This is a good plan for those who wish to apply for PSLF
- You could pay more over time compared to the 10-year Standard Repayment Plan
- Income tax may be charged for any outstanding balance forgiven
Income-Contingent Repayment Plan
- Direct Loans (Subsidized and Unsubsidized)
- Direct PLUS Loans
- Direct Consolidation Loans
- Payments are computed lesser than around 20% of your discretionary income
- Needs updating of income and family size information even if there are no changes
- Payments are adjusted and recalculated if income and family size have changed
- For married couples, both you and your spouse’s income will be considered in the discretionary income calculation if filing status is jointly, or you’ve decided to pay jointly your Direct Loans with your spouse
- Any loan balance remaining will be forgiven after 25 years
- This is a good plan for those who wish to apply for PSLF
- You could pay more over time compared to the 10-year Standard Repayment Plan
- Income tax may be charged for any outstanding balance forgiven
- If you are a parent borrower, you can consolidate your Parent PLUS loans to a Direct Consolidation Loan
Standard Repayment Plan
- All borrowers are eligible for this plan. This is the 10-year repayment plan that all borrowers are given automatically.
- Direct Loans
- PLUS Loans
- Stafford Loans (Subsidized and Unsubsidized)
- Consolidation Loans
- Payments are fixed for a period of 10 years until the entire loan is paid off. It can be longer than 10 years, up to 30 years if you have Consolidated Loans.
- You get to pay much less over time with this type of repayment plan.
- Not for those applying for PSLF
- If you have consolidation loans and it’s under this plan, it’s also qualified for PSLF
Graduated Repayment Plan
- All borrowers are eligible for this plan. This is the 10-year repayment plan that all borrowers are given automatically.
- Direct Loans
- PLUS Loans
- Stafford Loans (Subsidized and Unsubsidized)
- Consolidation Loans
- Payments are calculated over a period of 10 years. It starts small and gradually increases every two years, until the entire loan is paid off.
- It can be up to 30 years for Consolidated Loans.
- You pay more compared to the 10-year Standard Repayment Plan.
- Normally, it’s not a repayment plan recommended for PSLF.
Extended Repayment Plan
- For those who have Direct Loans with over $30,000 in outstanding balance
- Direct Loans
- PLUS Loans
- Stafford Loans (Subsidized and Unsubsidized)
- Consolidation Loans
- Payments are either graduated or a fixed amount, to be paid off for 25 years.
- Payments are lower compared to Standard and Graduated, but you could pay more with this type of repayment plan.
- Not for those applying for PSLF
Income-Sensitive Repayment Plan
- FFEL Program Loans
- Subsidized and Unsubsidized Federal Stafford Loans
- Payments are base on the borrower’s annual income
- Term of payment: 15 years
- Computed payment may be different depending on the formula used by the lender