The federal standard student loan repayment plan for Direct Loans and Federal Family Education Loan 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 standard balance-based plan is cheaper in the long run for the borrower. While monthly payments may be slightly higher than payments made under other plans, the loan will be paid off in the shortest time thereby accruing the lowest amount of interest over the life of the loan.
Eligible Federal Loans
The following loans from the Direct Loan Program and the FFEL Program are eligible for the Standard 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
Monthly Payments
Federal Education Loan (excluding Consolidation Loans) monthly payments are fixed at not less than $50 a month, must at least cover the cost of interest, and be paid for up to 10 years.
Monthly Payments for Consolidation Loans
Consolidation loan payments are fixed at no less than least $50 a month, must at least cover the cost of interest, and be paid for a period of between 10 and 30 years.
The length of the repayment period for Direct Consolidation loan or FFEL Consolidation loans depends on the amount of the borrower’s total education loan indebtedness. This total education loan indebtedness includes the amount of the consolidation loan and the borrower’s other student loan debt. Other student loan debt includes any federal student loans that are not included in the consolidation loan, as well as private education loans that are not eligible for consolidation.
The maximum amount of other student loan debt that may be considered in determining the borrower’s repayment period may not exceed the loan amount the borrower is consolidating.
The following chart shows the maximum repayment period for a Direct Consolidation loan or FFEL Consolidation loan under the Standard Repayment Plan depending on total education loan indebtedness.
| If the Total Education Loan Indebtedness is… | The Repayment Period will be | |
| At Least | Less Than | |
| $7,500 | 10 years | |
| $7,500 | $10,000 | 12 years |
| $10,000 | $20,000 | 15 years |
| $20,000 | $40,000 | 20 years |
| $40,000 | $60,000 | 25 years |
| $60,000 | 30 years |