Understanding Your Repayment Options

Federal repayment plans are not one big bucket. Some are active, some are legacy, and some are effectively off the board right now. Here's the full landscape in plain English.

Choosing the wrong repayment plan can cost you tens of thousands of dollars over time. But there is no universally "right" plan. The strongest fit depends on your income, career trajectory, loan type, and financial goals.

Some plans are the mainstream options most borrowers hear about. Others are older or narrower paths that still matter for specific loan types, especially FFEL or Parent PLUS-related situations. And some plans, like SAVE, are worth knowing about even when they are not currently active choices.

The goal here is to show the whole federal repayment map in a meaningful order: traditional fixed plans first, then active income-driven plans, then legacy or limited-use options, and finally blocked plans that still matter for context.

Traditional Fixed Plans

These are the standard balance-based repayment structures. Payments do not directly depend on your income.

Standard Repayment

10 Years
Official details
Term
10 years (120 payments)
Who It's For
People with stable income who can afford the payment
How Payments Work
Fixed monthly payment, same every month
Pros
Lowest total interest paid, fastest payoff, simple
Cons
Highest monthly payment, no forgiveness
Best For
Higher earners who want to pay off quickly
Example
$35,000 at 6.54% = ~$395/mo

Graduated Repayment

10 Years
Official details
Term
10 years (120 payments)
Who It's For
People who expect their income to grow significantly
How Payments Work
Starts low, increases every 2 years
Pros
Lower payments early when you're earning less
Cons
Pay more total interest than Standard; payments can feel like a shock later
Best For
New grads who expect strong career income growth
Example
$35,000 at 6.54% — starts ~$230/mo, rises to ~$690/mo

Extended Repayment

25 Years Fixed
Official details
Term
25 years (300 payments) with fixed monthly payments. Typically requires more than $30,000 in Direct Loans or more than $30,000 in FFEL Program loans within the same program.
Who It's For
Borrowers who need lower monthly payments long-term
How Payments Work
Fixed payment over 25 years
Pros
Lowest fixed monthly payment of any non-IDR plan
Cons
Much more total interest paid; no forgiveness
Best For
Someone who truly cannot afford Standard but doesn't qualify for low IDR payments
Example
$35,000 at 6.54% = ~$238/mo but ~$36,000 in total interest

Extended Graduated

25 Years Rising
Official details
Term
Up to 25 years with payments that start lower and rise over time. Uses the same general extended eligibility threshold as Extended Repayment.
Who It's For
Borrowers who need a lower starting payment but still want a non-IDR structure
How Payments Work
Payments increase at set intervals instead of staying flat
Pros
Combines a long term with lower early payments
Cons
Very high total interest and rising payment pressure later
Best For
Borrowers with large balances who do not qualify for or do not want IDR
Calculator Note
StudentLoanCompass does not currently model Extended Graduated because the formal repayment constraints are clear, but the exact schedule construction is less transparent than the plans already modeled here.
Active Income-Driven Plans

These are the currently relevant income-based paths borrowers still need to compare under today's federal rules.

IBR – New Borrowers

20 Years
Official details
Term
Up to 20 years, then forgiveness
Who It's For
Borrowers who qualify as new borrowers on or after July 1, 2014 and meet the partial financial hardship rules
How Payments Work
10% of discretionary income above 150% of the poverty guideline, capped at the Standard 10-year amount
Pros
Strong forgiveness path with a payment cap
Cons
Eligibility is narrower than many borrowers expect; unpaid interest can still matter
Best For
Lower-income eligible borrowers who want a current IDR path with a 20-year horizon

IBR – Old Borrowers

25 Years
Official details
Term
Up to 25 years, then forgiveness
Who It's For
Borrowers who do not qualify under the newer July 1, 2014 standard but do qualify for IBR
How Payments Work
15% of discretionary income above 150% of the poverty guideline, capped at the Standard 10-year amount
Pros
Still offers a live forgiveness path for borrowers who are not new IBR borrowers
Cons
Higher payment percentage and longer horizon than New IBR or PAYE
Best For
Borrowers whose eligibility lands them in older IBR rather than PAYE or New IBR

PAYE

20 Years
Official details
Full Name
Pay As You Earn
Term
Up to 20 years, then forgiveness
Who It's For
Borrowers who meet the statutory date-based PAYE eligibility rules and who can still enroll while PAYE remains open
How Payments Work
10% of discretionary income above 150% of the poverty guideline, capped at the Standard 10-year amount
Pros
20-year forgiveness timeline with a payment cap
Cons
Eligibility is narrow, and borrowers should verify current enrollment rules with StudentAid.gov
Best For
Borrowers who meet PAYE's date rules and want a capped IDR payment
Status Note
PAYE remains a live federal path, but current rules tightly limit who can newly use it. In practice, this is mainly for borrowers who were already repaying under PAYE on July 1, 2024 and still meet the plan's eligibility rules.

ICR

25 Years
Official details
Full Name
Income-Contingent Repayment
Who It's For
Direct Loan borrowers, especially those using a Direct Consolidation Loan after Parent PLUS borrowing
How Payments Work
The lesser of 20% of discretionary income or what you would pay on a fixed 12-year plan adjusted according to income
Pros
Often the critical IDR path for some Parent PLUS consolidation borrowers; still an active federal option
Cons
Usually less generous than PAYE or IBR for many borrowers; 25-year horizon
Best For
Borrowers whose loan history makes ICR their only or best IDR route
Status Note
ICR is still an active federal option, but current rules limit broad new enrollment. It matters most for borrowers already on ICR and for specific consolidation situations, especially Parent PLUS-related cases.
Legacy And Limited-Use Plans

These paths exist, but they are narrower, older, or too servicer-specific to behave like the main standardized repayment plans above.

Income-Sensitive

FFEL Only
Official servicer comparison
Availability
Legacy plan for eligible FFEL Program loans, not for Direct Loans
How Payments Work
Payments are based on annual income, with details handled through the FFEL servicer rather than the main current Direct Loan menu
Why It Matters
Some older FFEL borrowers still need to know this exists before deciding whether to consolidate
Calculator Note
StudentLoanCompass does not currently model this plan because it is a legacy FFEL-only path and does not fit the same standardized calculator flow as the main Direct Loan plans.

Alternative Repayment

Exceptional Cases
Official federal reference
What It Is
A rare servicer-arranged exception path that may be offered when the normal repayment menu does not adequately address exceptional circumstances
Why It Is Different
There is not one single standard borrower-facing formula. Terms depend on the approved arrangement and the servicer's handling of the case.
Why We Mention It
A comprehensive repayment site should acknowledge that this exception exists, even though it is not a mainstream comparison option.
Calculator Note
StudentLoanCompass does not model Alternative Repayment because there is no single official universal formula we can responsibly treat as a normal plan calculation.
Inactive / Blocked

These plans still matter for context, but they should not be presented like normal live enrollment options.

SAVE

Currently Blocked
Official status
Full Name
Saving on a Valuable Education
Why It Still Matters
SAVE reshaped borrower expectations, and many people still want to know where it fits compared with IBR, PAYE, and ICR.
Historical Design
It was intended to offer unusually low payments and stronger unpaid-interest treatment compared with older IDR structures.
Current Status
As of April 2026, SAVE is blocked by court action and is not treated here as a currently modeled active repayment option.
What To Do Instead
Check current StudentAid guidance and compare the live alternatives that remain available to you now.

All Plans at a Glance

Plan Name Term Payment Type Availability Forgiveness / Status
Standard Repayment 10 years Fixed — None
Graduated Repayment 10 years Increasing Broadly available None
Extended Repayment 25 years Fixed Balance threshold applies None
Extended Graduated Up to 25 years Increasing Balance threshold applies None
IBR – New 20 years Income-driven Active for eligible borrowers Yes (20 yrs)
IBR – Old 25 years Income-driven Active for eligible borrowers Yes (25 yrs)
PAYE 20 years Income-driven Active, but limited eligibility Yes (20 yrs)
ICR 25 years Income-driven Active for eligible Direct borrowers Yes (25 yrs)
Income-Sensitive Varies Income-based Legacy FFEL-only No standard long-term forgiveness path
Alternative Repayment Varies Custom Exceptional cases only Case-specific
SAVE 20-25 years Income-driven Blocked as of April 2026 Inactive / not modeled here

Which Plan Is Right For Me?

Calculator scope note: StudentLoanCompass currently models Standard, Graduated, Extended, ICR, IBR, and PAYE. Other paths shown here, including Extended Graduated, legacy FFEL-only options, and servicer-specific exception arrangements, are included for completeness, but not all can be estimated responsibly with one universal calculator formula.

High income, want to pay off fast?

Standard Repayment is often the lowest-total-cost option when the payment is affordable, but run your own numbers before treating it as the default answer.

Income will grow a lot but you want a traditional plan?

Graduated or Extended Graduated may lower the early payment and shift more of the burden later. Compare the long-term cost carefully.

Need the lowest possible payment and income matters more than speed?

Compare the live IDR options first: IBR, PAYE, and ICR where eligible. Eligibility and long-term outcomes can differ more than borrowers expect.

Have older FFEL or unusual loan history?

Do not assume the mainstream plan list is the whole story. Legacy paths like Income-Sensitive or ICR can change the answer.

Work in public service (government, nonprofit, teacher, etc.)?

PSLF can materially change the picture if you qualify, especially when paired with a live IDR option. Confirm employer and payment-count rules with official federal tools.

Thinking about consolidation to fix a messy loan mix or uneven payment counts?

Do not assume consolidation simply wipes out all prior credit or gives every loan the highest count. Current federal rules are more nuanced, and the biggest tradeoff can be plan eligibility plus weighted-average credit carryover.

Use StudentLoanCompass to run the numbers for YOUR situation →

Public Service Loan Forgiveness (PSLF)

If you work for a qualifying government agency or nonprofit employer, PSLF could be life-changing:

PSLF can be extremely valuable, but eligibility, qualifying payments, and employer status should be confirmed with official federal resources before you rely on it.