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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.
Helpful Tips
- Changing your repayment plan may require you to submit your request in writing, since it is an official change to your existing agreement.
- Not all lenders/loan servicers may offer these options.
Supporting Content
Related Information
Calculators
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?
- Standard Repayment—$121
- Graduated Repayment—$83
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.