LOAN PROGRAM OPTIONS
Learn about all of the different repayment options available to you, and form a plan of action.
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Which Repayment Plan Is Right for You?

Repayment plans determine your monthly student loan payment amount, how many years it will take to pay back what you borrowed, and how much interest you will pay over the life of your loan. The servicers (lenders) have several forms of repayment, below are their “Standard” where payments are based on debt amount.
*All loan types
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- Direct Consolidation Loans
- Subsidized Federal Stafford Loans
- Unsubsidized Federal Stafford Loans
- FFEL PLUS Loans
- FFEL Consolidation Loans
Student Loan Repayment Plans
Plans | Eligibility | Definitions | Supporting Link |
STANDARD |
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Standard repayment plans include making monthly payments over 10 years.
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EXTENDED FIXED |
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Extended repayment plans may be available if your total loan balance is over $30,000 in either Direct loans or FFELP, not a combination. These plans allow you to pay your loans over 25 years instead of 10. They may be good options if you need a lower monthly payment than a standard plan offers.
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GRADUATED |
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Your monthly payments start lower and get larger over the repayment period, usually increasing every two years. This may be a good option if you need a lower payment now, but expect to make more money in the future. Be aware that your payments will go towards interest only—not principal—in the beginning of the repayment plan. | Link |
EXTENDED GRADUATED |
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Payments can be fixed or graduated, and the plan allows you up to 25 years to repay what you owe. You will pay more in interest if you choose this route than you would on the standard plan. | Link |
INCOME-DRIVEN REPAYMENT PLANS

THESE REPAYMENT PLANS ALLOW YOU TO MAKE MONTHLY PAYMENTS THAT ARE BASED ON THE BORROWER’S DISCRETIONARY INCOME* IN ADDITION TO YOUR INCOME, ELIGIBILITY FOR THESE PLANS IS BASED ON YOUR FAMILY SIZE AND THE TYPES OF LOANS YOU HAVE. These plans also extend your repayment period to 20 or 25 years. If you still have a balance after all that time, the government will forgive your remaining balance.
* Discretionary income is the difference between your income and 150 percent of the poverty guideline for your family size and state of residence.
All four plans adjust your monthly student loan payments based on your income.
Student Loan Repayment Plans
Plans | Eligibility | Definitions | Supporting Link |
PAY AS YOU EARN (PAYE) |
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MONTHLY PAYMENTS ARE CALCULATED BY 10% OF DISCRETIONARY INCOME
{AKA – RE-CERTIFICATION}
*IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY |
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REVISED PAY AS YOU EARN (REPAYE) |
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MONTHLY PAYMENTS ARE CALCULATED BY 10% OF DISCRETIONARY INCOME
* IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY |
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INCOME BASED REPAYMENT (IBR) |
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MONTHLY PAYMENTS ARE CALCULATED BY 15% OF DISCRETIONARY INCOME
* IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY |
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INCOME-CONTINGENT REPAYMENT (ICR) |
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MONTHLY PAYMENTS ARE CALCULATED BY 10% OF DISCRETIONARY INCOME
* IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY |
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Providing Forgiveness

THESE ARE DIFFERENT SERVICES THAT CAN BE RENDERED TO BE ABLE TO ENROLL CLIENTS INTO A FORGIVENESS (IDR) PLAN
Service | Information Needed | Must Know | Supporting Link |
CONSOLIDATION |
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IDR REQUEST |
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PROGRAM CHANGE |
FROM IBR TO ANOTHER IDR PLAN
FROM ONE INCOME DRIVEN PLAN TO ANOTHER EX: REPAYE/PAYE TO ICR/IBR ETC. |
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RE-CERTIFICATION |
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YOUR LOAN SERVICER WILL SEND YOU A REMINDER NOTICE WHEN IT’S TIME FOR YOU TO RECERTIFY. YOU WILL NEED TO PROVIDE UPDATED INCOME INFORMATION | Link |
RECALCULATION | UPDATED INCOME INFORMATION |
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PUBLIC SERVICE LOAN FORGIVENESS (PSLF) |
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The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. | Link |
FORGIVENESS, CANCELLATION, AND DISCHARGE

IN VERY SPECIFIC CASES, BORROWERS CAN GET THEIR FEDERAL STUDENT DEBT DISMISSED BY MEETING CERTAIN CRITERIA
DISABILITY DISCHARGE | Qualifications | Outcome | Supporting Link | |
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IF DENIED
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SCHOOL CLOSURE | Qualifications | Approval | Supporting Link |
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DISQUALIFICATIONS | DENIAL | ||||
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BORROWERS DEFENSE TO REPAYMENT.

THIS PROCESS WILL GET LOAN DISMISSAL BY SUBMITTING A CLAIM AND EVIDENCE THAT PROVES AN EDUCATIONAL INSTITUTION VIOLATED FEDERAL REGULATIONS/LAWS; THEREFORE THE STUDENT/BORROWER SHOULD NOT HAVE TO BE FORCED TO REPAY FUNDS RELEASED FOR AN EDUCATION THAT WASN’T OBTAINED
BORROWER’S DEFENSE TO REPAYMENT
Overview | Supporting Documents | Outcome | Supporting Link |
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