Student Loan Repayment: What You Need to Know
Repaying your student loans is a crucial step in managing your financial future. The U.S. Department of Education offers several repayment plans designed to fit different income levels and career paths. Your options include:
Standard Repayment: Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).
Graduated Repayment: Payments are lower at first and then increase, usually every two years. Payment amounts are designed to ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).
Extended Repayment: Payments can be fixed or graduated and will ensure that your loans are paid off within 25 years.
Income-Driven Repayment (IDR): IDR plans base your monthly payment amount on how much money you make and your family size. After satisfying a certain number of months of qualifying payments on an IDR plan, you can get the remaining balance of your loan(s) forgiven.
If you work in public service, education, or certain nonprofit roles, you may qualify for loan forgiveness programs like:
Visit studentaid.gov/loan-simulator to explore your options and get started on a repayment plan that works for you.
An income-driven repayment (IDR) plan bases your monthly student loan payment amount on your income and family size. For some people, payments on an IDR plan can be as low as $0 per month.
There are several income-driven repayment plans:
Pay As You Earn (PAYE) Repayment Plan & Income-Based Repayment (IBR) Plan: Under these plans, your monthly payment will never be more than the 10-year Standard Repayment Plan amount.
Income-Contingent Repayment (ICR) Plan: Under the ICR Plan, your payment is always based on your income and family size.
Saving on a Valuable Education (SAVE) Plan: Under the SAVE Plan, your payment is always based on your income and family size. In some cases your payment can be higher than the amount you would have to pay under the 10-year Standard Repayment Plan.
📌To repay your federal student loans under an Income-Driven Repayment (IDR) plan, you must submit an application at studentaid.gov/idr.
If you’re behind on your loans or worried about delinquency or default, take action now:
Contact Your Loan Servicer
They can help you understand your options and avoid default.
Explore Income-Driven Repayment (IDR)
Switching to an IDR plan can lower your monthly payments.
If You’re in Default:
Loan Rehabilitation: Make on-time, affordable payments to restore your credit.
Loan Consolidation: Combine your loans into one and start fresh under an IDR plan.
Understand the Risks of Default:
Wage garnishment
Loss of tax refunds
Damaged credit score
Ineligibility for federal aid
💬 Need Help? Contact a student loan advisor or financial aid office.