Lower Payment Options

Available only for Direct Loan borrowers with eligible loan types

Your required monthly payment amount under the Repayment Assistance Plan is calculated by using a percentage (not more than 10%) of your adjusted gross income, divided by 12. Your monthly payment amount is then reduced by $50 for each dependent you claim on your federal tax return; however, your monthly payment may not be less than $10 a month.

Payments are recalculated each year and are based on your updated income and the dependents you claim on your federal tax return.

If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return.

Any outstanding balance will be forgiven if you haven’t repaid your loan in full after making 30 years of qualifying payments.

Any amount that is forgiven may be considered income for tax purposes.

You must have a high debt relative to your income.

Your monthly payments will be either 10 or 15 percent of discretionary income (depending on when you received your first loans), but never more than you would have paid under the 10-year Standard Repayment Plan.

Payments are recalculated each year and are based on your updated income and family size.

You must update your income and family size each year, even if they haven’t changed.

If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return.

Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 or 25 years, depending on when you received your first loans.

You may have to pay income tax on any amount that is forgiven.

You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.

You must have a high debt relative to your income.

Your monthly payments will be 10 percent of discretionary income, but never more than you would have paid under the 10-year Standard Repayment Plan.

Payments are recalculated each year and are based on your updated income and family size.

You must update your income and family size each year, even if they haven’t changed.

Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 years.

You may have to pay income tax on any amount that is forgiven.

Any Direct Loan borrower with an eligible loan type may choose this plan.

Your monthly payment will be the lesser of

• 20 percent of discretionary income, or
• the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income.

Payments are recalculated each year and are based on your updated income, family size, and the total amount of your Direct Loans.

You must update your income and family size each year, even if they haven’t changed.

If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse.

Any outstanding balance will be forgiven if you haven’t repaid your loan in full after 25 years.

You may have to pay income tax on any amount that is forgiven.

Available only for Direct Loans

Payments are a fixed amount each month

Under the Tiered Standard plan, your maximum repayment period is based on your total outstanding principal balance when you enter the plan.

• All FFELP borrowers
• Direct Loan borrowers who have all loans disbursed prior to July 1, 2026

Payments are a fixed amount each month and your monthly payment will be at least $50.

The fixed payment amount ensures that your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans)

• All FFELP borrowers
• Direct Loan borrowers who have all loans disbursed prior to July 1, 2026

Payments are lower at first and then increase, usually every two years.

The payment amounts ensure that your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans)

If you’re a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans and have all loans disbursed prior to July 1, 2026

Payments may be fixed or graduated.

The payment amounts ensure that your loans are paid off within 25 years.

Available only for FFELP loans, which are not eligible for PSLF.

Your monthly payment is based on annual income.

The payment amounts ensure that your loans are paid off within 15 years.