Payment Plans

Standard

This is the plan you are defaulted to upon entering repayment. It's also the fastest and most cost-effective.

Features	Details
Your financial situation	I can afford my monthly payments. No sweat!
Benefits	Pay your loans off faster and pay less interest compared to other plans.
Monthly payments	Minimum monthly payments start at $50.00. Payments of principal and interest remain the same throughout repayment. Small changes may occur for variable interest rate loans.
Things to consider	If you can't afford your payments, choose another plan that fits your budget.
How to apply	No need to apply since you automatically start repayment on this plan.

Allows for smaller payments to start, then your payments gradually increase over time.

Features	Details
Your financial situation	I can swing smaller monthly payments right now.
Benefits	Pay less for the first few years, then more as your career grows.
Monthly payments	Initially lower and then increase later in repayment. Amount varies throughout repayment.
Things to consider	Assumes that your income will grow enough to afford increasing payments. Initial payments mainly cover interest, not the principal balance. You will pay a greater amount of interest than the standard plan.
How to apply	Contact our Loan Servicing department.

Payments are adjusted based upon your income and you are required to re-apply annually.

Features	Details
Your financial situation	I'm worried about my monthly payments and need some flexibility.
Benefits	Pay what you can afford based on your income.
Monthly payments	Based on your gross monthly income and student loan debt. Must at least cover the interest that accrues each month.
Things to consider	You must reapply annually. More expensive in the long run because you repay the principal at a slower rate.
How to apply	Download and complete an Income Sensitive Application (70 KB PDF). Submit documentation of your most recent total monthly gross income from all sources (i.e. pay stub). Mail or fax your completed application and required documentation to: FedLoan Servicing P.O. Box 69184 Harrisburg, PA 17106-9184 Fax: 717-720-1628

New in 2009, this program calculates payments based on your family size to income ratio.

Features	Details
Your financial situation	I have little or no income and mounds of student loan debt, so I'm stressed about my monthly payments.
Benefits	Pay what you can afford based on your income and family size.
Monthly payments	Based on your adjusted gross income and family size. May be less than the interest that accrues each month.
Things to consider	May extend the repayment period past the standard 10-years. Offers loan forgiveness for making 300 qualifying payments on/after July 1, 2009. Learn more about Income-based Repayment.
How to apply	Download and complete an Income-based Repayment Plan Request Form (179 KB PDF). Submit a copy of your most recent tax return. Mail your completed application and required documentation to: FedLoan Servicing P.O. Box 69184 Harrisburg, PA 17106-9184

If you have over $30,000 in student loan debt, this plan allows you to extend the repayment term past the standard 10 years.

Features	Details
Your financial situation	I owe $30,000 or more, but none of the other payment plans work for me.
Benefits	Pay less every month over a longer time.
Monthly payments	Smaller payments over 25 years, instead of the standard 10-year repayment period.
Things to consider	Only available if your loans were first disbursed on/after October 7, 1998, and your current balance is $30,000 or higher. Longer repayment period means higher interest costs compared to a standard or graduated plan.
How to apply	Contact our Loan Servicing department.