Repayment Options for Federal Student Loans

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.

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

Your monthly payments will be 10 percent of discretionary income until changes in the Summer of 2024.

Starting in the Summer 2024, borrowers on the SAVE plan will have their payments on undergraduate loans cut in half (reduced from 10% to 5% of income above 225% of the poverty line). Borrowers who have undergraduate and graduate loans will pay a weighted average of between 5% and 10% of their income based upon the original principal balances of their loans.

Starting Summer 2023, if you’re making $32,800 a year or less (which is roughly $15 dollars an hour), your monthly payment will be $0. If you’re making more than that, you will save at least $1,000 a year, compared to other IDR plans.

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.

Spousal income is excluded for borrowers who are married and file separately.

Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).

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

You may be eligible for loan forgiveness after 10 years if you are seeking Public Service Loan Forgiveness.

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.

All borrowers are eligible for this plan.

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 borrowers are eligible for this plan.

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.

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.