Federal Student Loan Repayment Plans
Choosing the right repayment plan can save you thousands — or unlock forgiveness. Here's exactly how each plan works.
Standard Repayment
Highest monthly payment, lowest total interest paid.
Term
10 years
Payment
Fixed monthly payment
Best For
Borrowers who can afford higher payments and want to minimize total interest
Forgiveness
None — paid off in 10 years
Graduated Repayment
Pay more interest overall than Standard. Good if income is low now but will grow.
Term
10 years
Payment
Starts low, increases every 2 years
Best For
Borrowers expecting income growth (early-career)
Forgiveness
None
Income-Based Repayment (IBR)Popular
New borrowers: 10% of discretionary income for 20 years. Older: 15% for 25 years.
Term
20–25 years
Payment
10–15% of discretionary income
Best For
Borrowers with high debt relative to income
Forgiveness
After 20–25 years; forgiven amount is taxable
Pay As You Earn (PAYE)
Payment never exceeds what you'd pay on Standard. Strong cap protection.
Term
20 years
Payment
10% of discretionary income
Best For
New borrowers (first borrowed after Oct 1, 2007)
Forgiveness
After 20 years; forgiven amount may be taxable
SAVE (Saving on a Valuable Education)Popular
Replaced REPAYE. Uses 225% poverty line as protection (vs 150%). Interest doesn't capitalize if payment covers it.
Term
20–25 years
Payment
5–10% of discretionary income
Best For
Borrowers wanting the lowest possible payment
Forgiveness
After 20 years (undergrad) or 25 years (grad); may be tax-free
Compare plans with real numbers
Enter your loan balance and income to see your exact monthly payment under each plan.
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