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Federal Direct Loan Repayment Plans

Borrowers may choose one of the following four repayment plans, for either the Federal Direct Subsidized or Unsubsidized Stafford Loan:

  • Standard Repayment Plan: The borrower pays a fixed amount each month ($50 minimum) for up to 10 years.
  • Extended Repayment Plan: Borrowers can extend loan repayment up to a maximum of 25 years.  However, this option is available only to those who were new Direct Loan borrowers on or after 10/7/98, and have an outstanding Direct Loan balance greater than $30,000. The required monthly payment is calculated based on the borrowers Direct Loan debt and the interest rates of the borrower’s loans, but the monthly payment due will never be less than the amount of interest that accrues each month.
  • Graduated Repayment Plan: The borrower makes monthly payments that start out low and increase every two years, until the loan is paid in full. The maximum repayment term is 10 years.
  • Income Contingent Repayment Plan: The monthly payment is based on the borrower’s loan amount, family size, and yearly income (including spouse’s income, if married). As the borrower’s income rises or falls, so does the payment amount. The maximum repayment term is 25 years.

Estimating Your Repayments

Learn more about repayment plan options and how to estimate your repayments using the federal student aid Repayment Estimator.

Choosing or Changing Your Repayment Plan

Learn how to choose which repayment plan option is best for you and how to change your repayment plan if you decide that the plan you’ve selected no longer meets your needs. Yor loan servicer can help you choose or change your repayment plan. Learn more about and how to contact your loan servicer.