Fixed Payment 

There are a few different options with fixed payment plans. With this type of repayment, your monthly payment is based on the amount you owe and your interest rate, within a fixed time period for repayment. If you have a Direct Subsidized or Unsubsidized loan, Subsidized or Unsubsidized Federal Stafford loan, a PLUS Loan (Direct or FFEL), or Consolidation Loan (Direct or FFEL), fixed payment is an option. 

Standard repayment

With just one loan, standard repayment means you will pay off your loan within 10 years (up to 30 years with a consolidation loan). Your monthly payment is a fixed amount based on how much you owe. It’s called standard for a reason: this is the repayment plan you’re automatically placed in unless you enroll in a different plan. This is the way to go if you want to pay less interest in the long run. 

Extended repayment

If you wouldn’t be able to make the monthly payments with a standard repayment plan, extended repayment gives you 25 years to repay your loan instead of 10. If you have Direct Loans or FFEL Program Loans, you have to have more than $30,000 in outstanding loans of either type to qualify. 

Graduated repayment

With graduated repayment, your payments start out lower and then increase over time. If you expect to be making more money within the next few years, this can help ease your budget when you’re first getting started in your career. 

Income-driven repayment (IDR)

With IDR, your monthly payments are based on your income and how many people are in your family. Because of that, you’ll need to give your loan servicer updated info on family size and income every year. It gives you a bit more flexibility, so your loan repayment can fit your life better. 

Eligibility depends on your loan type, so make sure to check with the Office of Student Aid to see which repayment plans your loans qualify for. 

ICR Plan 

With an ICR plan, you’ll pay either the amount of money you would pay on a fixed payment repayment plan over 12 years, or 20% of your discretionary income, whichever amount is less.  

Pay as You Earn (PAYE) Plan 

Expect to pay 10% of your discretionary income, but not more than you’d pay with the 10-year standard repayment plan. You also have to be a new borrower on or after October 1, 2007, and you need to have gotten a disbursement of a Direct Loan on or after October 1, 2011. 

Income-Based Repayment (IBR) Plan

Similar to the PAYE plan, with the IBR plan you’ll either pay 10% or 15% of your discretionary income, but not more than you’d pay with the 10-year standard repayment plan. The percentage you pay depends on when you took out your first loans.  

Saving on a Valuable Education (SAVE) Plan

With the SAVE plan, your monthly payment is 10% of your discretionary income, as calculated each year based on your income and family size. 

Consolidation Loans 

If you’re juggling several different loans, it can help to consolidate. Consolidating combines all of your different loans into one, so you only have one payment to make each month. You also might qualify for a repayment plan that will benefit you more or give you more time to pay back your loans.  

Federal Perkins Loans

If you have Federal Perkins Loans, the process for repayment is a little different. The Office of Federal Student Aid recommends speaking directly with your school about the options. 

How to get your loans forgiven 

If you’re working in the public sector, whether as a government employee, nonprofit personnel, or as a teacher, you may qualify for public student loan forgiveness. You can apply online to potentially have your loans forgiven after a period of public service and 120 payments. 

There are a lot of options to sift through when it comes to student loan repayments. The Federal Student Aid repayment plan comparison tool can give you an easy look at which repayment plans you qualify for. And when you’re ready to master other aspects of your personal finance, RMCU’s free Money Mastermind course can give you a leg up on your financial life.* 

*Must qualify for membership. Some restrictions may apply. Each account is privately insured up to $250,000 by American Share Insurance. By member’s choice, this institution is not federally insured.