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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 | Graduated | Extended | Income- Based* (IBR) |
Income- Sensitive** (FFELP only) |
Income- Contingent** (FDLP only) |
Pay As You Earn**** (FDLP only) |
|
|---|---|---|---|---|---|---|---|
| Monthly Payment |
$173 | Yrs. 1-2: $119 Yrs. 3-4: $144 |
Loan balance must be greater than $30,000 |
Min: $166 Max: $173 |
Yr. 1: $100 Yrs. 2-10: $184 |
Yr. 1: $124 Max: $133 |
Yr. 1: $110 Max: $173 |
| Term | 10 years | 10 years | n/a | 10 years | 10 years | 16 years | 20 years |
| Total Interest | $5,714 | $6,833 | n/a | $5,792 | $6,048 | $10,183 | $8,808 |
| Total Paid | $20,714 | $21,833 | n/a | $20,792 | $21,048 | $25,183 | $23,808 |
Example 2: Loan balance = $45,000; interest rate = 6.8%
| Standard | Graduated | Extended | Income- Based* (IBR) |
Income- Sensitive** (FFELP only) |
Income- Contingent** (FDLP only) |
Pay As You Earn**** (FDLP only) |
|
|---|---|---|---|---|---|---|---|
| Monthly Payment |
$518 | Yrs. 1-2: $356 Yrs. 3-4: $432 |
$312 | Yr. 1: $166 Max: $518 |
Yr. 1: $100 Yrs. 2-10: $582 |
Yr. 1: $320 Max: $400 |
Yr. 1: $110 Max: $282 |
| Term | 10 years | 10 years | 25 years | 25 years | 10 years | 17 years | 20 years |
| Total Interest | $17,143 | $20,500 | $48,701 | $65,854 | $19,061 | $33,505 | $61,170 |
| Total Paid | $62,143 | $65,500 | $93,701 | $95,564 | $64,061 | $78,505 | $44,313 |
Example 3: Loan balance = $75,000; interest rate = 6.8%
| Standard | Graduated | Extended | Income- Based* (IBR) |
Income- Sensitive** (FFELP only) |
Income- Contingent** (FDLP only) |
Pay As You Earn**** (FDLP only) |
|
|---|---|---|---|---|---|---|---|
| Monthly Payment |
$863 | Yrs. 1-2: $593 Yrs. 3-4: $720 |
$521 | Yr. 1: $166 Max: $536 |
Yr. 1: $100 Yrs. 2-10: $980 |
Yr. 1: $320 Max: $689 |
Yr. 1: $110 Max: $282 |
| Term | 10 years | 10 years | 25 years | 25 years | 10 years | 25 years | 20 years |
| Total Interest | $28,572 | $34,167 | $81,165 | $127,010 | $32,073 | $117,349 | $102,000 |
| Total Paid | $103,572 | $109,167 | $156,165 | $95,775 | $107,073 | $160,116 | $44,313 |
* The Income-Based Repayment (IBR) plan example is calculated based on an adjusted 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 adjusted gross income and family size. Any remaining balance, including interest, is forgiven after 25 years of qualifying payments under this plan. This plan is offered to student loan borrowers of the FFELP and FDLP.
Also, any Stafford, Direct, Grad PLUS, Direct Student 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 and Direct PLUS loans, or Consolidation loans that repaid a parent PLUS or Direct PLUS loan.
** The Income-Sensitive Repayment plan is calculated based on an annual salary of $30,000 and 4 percent 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 plan example is calculated based on an adjusted 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 & 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).
**** The Pay As You Earn Repayment plan example is calculated based on an adjusted gross income of $30,000 and a family size of one living in the contiguous United States. Monthly payment amounts under the Pay As You Earn plan may change annually based upon the borrower’s adjusted gross income and family size. Any remaining balance, including interest, is forgiven after 20 years of qualifying payments under this plan. This plan is only offered to certain student loan borrowers of the FDLP.
Calculator sources: www.finaid.org; www.studentaid.ed.gov
Here are other documents located on www.tgslc.org that you may be interested in:
