06/23/2026
Whether you're a recent grad just entering repayment or a parent trying to help your child navigate the process, knowing what repayment plans are available can save you thousands of dollars over time.
Here's a breakdown of the most common federal student loan repayment options:
Standard Repayment Plan
🔹 Fixed payments over 10 years
🔹 You'll pay less interest overall compared to other plans
🔹 Best for: borrowers who can afford consistent monthly payments
Graduated Repayment Plan
🔹 Payments start low and increase every two years
🔹 Still paid off within 10 years
🔹 Best for: borrowers expecting their income to grow over time
Extended Repayment Plan
🔹 Fixed or graduated payments stretched over up to 25 years
🔹 Lower monthly payments but more interest paid over time
🔹 Best for: borrowers with more than $30,000 in federal loans who need payment relief
Income-Driven Repayment Plans (IDR)
There are several IDR options, including:
🔹 SAVE Plan: Payments based on income and family size; remaining balance forgiven after 20–25 years
🔹 Pay As You Earn (PAYE): Payments capped at 10% of discretionary income
🔹 Income-Based Repayment (IBR): Payments capped at 10–15% of discretionary income
🔹 Income-Contingent Repayment (ICR): Payments based on income or a 12-year fixed plan, whichever is less
🔹 Best for: borrowers with high debt relative to their income
Public Service Loan Forgiveness (PSLF)
🔹 Available to borrowers working full-time for a qualifying government or nonprofit employer
🔹 Remaining balance forgiven after 120 qualifying payments (10 years)
🔹 Best for: teachers, nurses, social workers, and other public service professionals
A Few Important Things to Know:
✅ These plans apply to federal student loans; private loans have different options
✅ Enrolling in an income-driven plan may lower your monthly payment but increase total interest paid
✅ Forgiven amounts may be considered taxable income depending on the plan
✅ Always recertify your income annually if you're on an IDR plan
Not sure which plan is right for your situation? This is exactly the kind of conversation worth having with a financial professional. Reach out—we're here to help.
