Reduce Your Monthly Payments

Having difficulty making your monthly student loan payments? Changing your repayment plan allows you to reduce your monthly payments without penalty.

Examine your financial situation carefully to make sure you are using the repayment plan that best meets your ability to pay.

The following repayment plans are available for federal loans. If you have an alternative (private) loan, check with your lender/loan servicer for available options. Alternative loans generally have less flexible options than federal loans do.

If your repayment plan is… Then your monthly payment is…
Standard The same throughout the life of the loan (minimum = $50)
Graduated Less now, more later
Pay As You Earn* Based on you and your spouse's adjusted gross income, family size, and state of residence
Revised Pay As You Earn (REPAYE)* Monthly payments are based on your adjusted gross income (with your spouse, if applicable), your family size, and your state of residence.
Income-Based (IBR) Based on your income, family size, and your eligible loan debt
Income-Contingent* Based on you and your spouse's adjusted gross income and family size
Income Sensitive Based on your income
25-Year Extended Reduced, but you must pay for a longer amount of time

* For Direct Loans only.

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Repayment Example

Annie borrows $10,500 in federal loans at 6.8% interest. How will a change in repayment plans affect her initial monthly payments?

She will initially save $38 each month, but she will end up paying an additional $783 over the life of the loan if she uses a graduated repayment plan.