The federal standard student loan repayment plan for Direct loans and Federal Family Education loans is based on the borrower’s balance (rather than the borrower’s income or other factors). These balance-based plans are fixed and made for up to 10 years (between 10 and 30 years for consolidation loans).
Federal student loan borrowers have options on which repayment plan to choose. The standard balance-based repayment plan is the default plan that the loan servicer will put the borrower in unless the borrower applies and is approved for a different plan.
The extended balance-based plan allows eligible borrowers to repay their loans over an extended period of time up to 25 years.
Eligible Federal Loans
The following loans from the Direct Loan Program and the FFEL Program are eligible for the Graduated Repayment Plan:
- 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
Eligibility
Direct Loan borrowers must have had no outstanding balance on a Direct Loan as of October 7, 1998, or on the date the borrower obtained a Direct Loan after October 7, 1998, and the borrower must have more than $30,000 in outstanding Direct Loans.
FFEL borrowers must have had no outstanding balance on a FFEL Program loan as of October 7, 1998, or on the date the borrower obtained a FFEL Program loan after October 7, 1998, and the borrower must have more than $30,000 in outstanding FFEL Program loans.
Monthly Payments
Under this plan, monthly payments are a fixed or graduated amount, made for up to 25 years, and generally lower than payments made under the Standard and Graduated Repayment Plans.