Repaying Your Student Loan

Comparison of Repayment Plans

If you're having difficulty repaying your federal student loans, help is available, including flexible payment options that could meet the needs of your particular financial circumstances. Compare the repayment plans below to find out what plan may work for you.

When choosing a repayment plan, consider the total interest accrued and the total amount paid under each option.

Example 1: Loan balance = $15,000; interest rate = 6.8%

	Standard	Income-Based*	Graduated	Income-Sensitive** (FFELP only)	Income-Contingent*** (FDLP only)	Extended
Monthly Payment	$173	$172	Yrs. 1-2: $119 Yrs. 3-4: $144	Yr. 1: $100 Yrs. 2-10: $184	Yr. 1: $124 Max: $133	n/a
Term	10 years	10 years	10 years	10 years	16 years	n/a
Total Interest	$5,714	$5,722	$6,833	$6,048	$10,183	n/a
Total Paid	$20,714	$20,722	$21,833	$21,048	$25,183	n/a

Example 2: Loan balance = $30,000; interest rate = 6.8%

	Standard	Income-Based*	Graduated	Income-Sensitive** (FFELP only)	Income-Contingent*** (FDLP only)	Extended
Monthly Payment	$345	Min: $172 Max: $345	Yrs. 1-2: $237 Yrs. 3-4: $288	Yr. 1: $100 Yrs. 2-10: $383	Yr. 1: $248 Max: $266	n/a
Term	10 years	18 years	10 years	10 years	16 years	n/a
Total Interest	$11,429	$25,847	$13,667	$12,554	$20,366	n/a
Total Paid	$41,429	$55,847	$43,667	$42,554	$50,366	n/a

Example 3: Loan balance = $60,000; interest rate = 6.8%

	Standard	Income-Based*	Graduated	Income-Sensitive** (FFELP only)	Income-Contingent*** (FDLP only)	Extended
Monthly Payment	$690	Min: $172 Max: $548	Yrs. 1-2: $474 Yrs. 3-4: $576	Yr. 1: $100 Yrs. 2-10: $781	Yr. 1: $320 Max: $546	$416
Term	10 years	25 years*	10 years	10 years	23 years	25 years
Total Interest	$22,858	$81,982	$27,333	$25,567	$66,686	$64,933
Total Paid	$82,858	$98,564	$87,333	$85,567	$127,113	$124,933

* The Income-Based Repayment (IBR) plan example is calculated based on an annual gross income of $30,000 and a family size of one living in the contiguous United States. Monthly payment amounts under the IBR plan may change annually based upon the borrower's annual gross income and family size. Any remaining balance, including interest, is forgiven after 25 years of qualifying payments under this plan.

** The Income-Sensitive Repayment plan example is calculated based on an annual salary of $30,000 and 4% monthly adjusted gross income allocation to the loan payment. Total interest paid over the life of the loan and the term will vary depending on the percentage of income that the borrower chooses to allocate each year to his or her loan payment. This plan is only offered to student loan borrowers of the Federal Family Education Loan Program (FFELP).

*** The Income-Contingent Repayment (ICR) plan example is calculated based on an annual gross income of $30,000 and a family size of one living in the contiguous United States. This repayment amount will be recalculated annually and is subject to change based on the poverty guidelines per family size as determined by the U.S. Department of Health and Human Services. This plan has a maximum term of 25 years and is only offered to student loan borrowers of the Federal Direct Loan Program (FDLP).

Also, any Stafford, Grad PLUS or Consolidation loan made under either the FDLP or FFELP is eligible for repayment under IBR, EXCEPT loans that are currently in default, parent PLUS Loans, or Consolidation loans that repaid a parent PLUS Loan.

Sources: FinAid; Student Aid on the Web