Repayment Tips

For federal loans, you will receive a standard repayment plan by default. (You can, however, request a different plan.) You’ll make fixed payments of principal and interest for up to 10 years. Standard repayment is not a bad choice, because it usually is the least expensive overall.

But if the standard repayment plan means your monthly payments are greater than 10 percent of your monthly income, you should consider an alternative.

Another option is a graduated plan, which you might consider if you expect your income to increase substantially over the next 10 years. Three other plans that link what you repay to your income are available; these plans let you take up to 25 years to repay.

Note that if you have a FFEL loan from a private lender that made federally backed loans before 2011, an income-linked plan is available.

 

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