Extended Graduated Repayment Plans

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If your student loan payments are difficult to keep up with, a repayment plan that makes your payments as low as possible might be a good idea.

The extended graduated repayment plan does this by spreading your payments out over 25 years — but it’s not always the right choice for everyone.

Here’s what to know if you’re considering the extended graduated repayment plan:

• What is an extended graduated repayment plan?
• What’s the difference between extended repayment plans and extended graduated repayment plans?
• Benefits and risks to extended graduated repayment plans
• Alternatives to extended graduated repayment plans
• Consider refinancing your student loan

What is an extended graduated repayment plan?

The extended graduated repayment plan combines features of both the graduated repayment plan and the extended repayment plan.

Keep in mind that while the extended graduated repayment plan lowers your payments, it generally leads to higher interest costs over time.

The table below shows how your payments might look under the extended graduated repayment plan. The numbers used are based on the average cumulative debt for graduate students and Parent PLUS Loans based on data from the National Center for Education Statistics for undergraduate and graduate borrowers.

What’s the difference between extended repayment plans and extended graduated repayment plans?

The extended repayment plan and extended graduated repayment plan both offer a 25-year repayment term with lower monthly payments.

Some of the differences include the following:

• With an extended repayment plan, you’ll have a fixed monthly payment, while the extended graduated repayment plan has payments that start low and go up every two years.
• You’ll pay more interest on the extended graduated repayment plan than you would on the extended repayment plan.

For example, if you’re an undergraduate borrower with $40,000 in federal student loans, you’d pay about $6,000 more over time on the extended graduated repayment plan. You’d also wind up with a much higher monthly payment toward the end of repayment.

Benefits and risks to extended graduated repayment plans

Before choosing an extended graduated repayment plan, be sure to consider the benefits and risks.

Benefits

• Access to lower monthly payments: On an extended graduated repayment plan, your payments will likely go down right away. However, this also means you’ll end up with much higher payments at the end of the 25-year repayment period.

Risks

• Higher payments at the end of the repayment term: Although having a lower payment can be tempting to avoid student loan default, keep in mind that your monthly payments will be much higher when you finish than when you start.
• Might have payments you can’t afford: If your income doesn’t go up as you expect it to, you could get stuck with high monthly payments that you can’t afford. If this is a possibility for you, an income-driven repayment plan could be a better idea than a graduated plan.
• Higher interest charges: You might end up spending thousands more on interest over the life of your loan if you choose an extended graduated repayment as your initial lower monthly payment will pay off less principal each month.

Learn More: How Often Can You Refinance Student Loans?

Alternatives to extended graduated repayment plans

While the extended graduated repayment plan might save you money today, it’s often a poor decision in the long run because of the higher payments and interest charges you’ll end up with.

Other repayment plans also qualify for student loan forgiveness programs that the extended graduated repayment plan doesn’t.

Here are some alternatives to the extended graduated repayment plan that typically come with a lower total cost:

• Revised Pay As You Earn (REPAYE): As long as you have federal Direct Loans, you can sign up for the REPAYE plan. Under REPAYE, your payments are limited to 10% of your discretionary income, and any remaining balance is forgiven after 20 or 25 years, depending on whether you have undergraduate or graduate loans.
• Income-Based Repayment (IBR): If you took out federal student loans on or after July 1, 2014, your payments will be limited to 10% of your discretionary income under IBR (15% if you took out loans before that). You’ll also need to demonstrate a partial financial hardship to qualify for IBR. Any remaining balance will be forgiven after 20 years.

If you have multiple loans, you could also consider combining them into a federal Direct Consolidation Loan or through private student loan consolidation.

Just keep in mind that if you consolidate with a private student loan, you’ll be giving up your federal benefits, such as access to income-driven repayment plans.

Learn More: Federal Student Loan Repayment Options

Consider refinancing your student loan

Another option is student loan refinancing. When you refinance your student loans, you pay off your old loans with a new private student loan. This could help you get a lower interest rate or monthly payment.

You might have to pay a little more upfront or per month if you refinance your student loans, but you could still end up saving thousands of dollars over the life of the loan.

If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare rates from our partner lenders in the table below in just a few minutes. The lenders shown here compensate Credible.

Lender	Variable rates from (APR)	Fixed rates from (APR)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.79%+	4.4%+
Fixed APR: 4.4%+ Variable APR: 4.79%+ Min. credit score: 720 Loan amount: $10,000 to $400,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Military deferment, forbearance Fees: Late fee Discounts: Autopay Eligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas Customer service: Email, phone Soft credit check: 720 Cosigner release: No Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $100,000 - $149,000 Max. Graduate Loan Balance: $200,000 - $400,000 Offers Parent PLUS Refinancing: Does not disclose
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	6.26%+1	5.39%+1
Fixed APR: 5.39%+1 Variable APR: 6.26%+1 Min. credit score: Does not disclose Loan amount: $10,000 to $750,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 24 to 36 months Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $100,000 to $149,000 Max. Graduate Loan Balance: Less than $150,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.99%+2	5.99%+2
Fixed APR: 5.99%+2 Variable APR: 5.99%+2 Min. credit score: Does not disclose Loan amount: $5,000 to $300,000 Loan terms (years): 5, 7, 10, 12, 15 Repayment options: Military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: All states except for ME Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 24 to 36 months Loan servicer: College Ave Servicing LLC Max. Undergraduate Loan Balance: $100,000 to $149,000 Max. Graduate Loan Balance: Less than $300,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	7.41%+5	7.41%+5
Fixed APR: 7.41%+5 Variable APR: 7.39%+5 Min. credit score: 700 Loan amount: $7,500 to $200,000 Loan terms (years): 5, 10, 15, 20 Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and submit two personal references Customer service: Email, phone Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Granite State Management & Resources (GSM&R) Max. Undergraduate Loan Balance: $150,000 to $249,000 Max. Graduate Loan Balance: $150,000 to $199,000 Offers Parent PLUS Refinancing : Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.78%+3	5.08%+3
Fixed APR: 5.08%+3 Variable APR: 4.78%+3 Min. credit score: 680 Loan amount: $10,000 to $250,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved school Customer service: Email, phone Soft credit check: Yes Cosigner release: No Loan servicer: Mohela Max. Undergraduate Loan Balance: $250,000 Max. Graduate Loan Balance: $250,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	6.61%+4	5.61%+4
Fixed APR: 5.61%+4 Variable APR: 6.61%+4 Min. credit score: 670 Loan amount: $5,000 to $250,000 Loan terms (years): 5, 10, 15, 20 Repayment options: Academic deferment, military deferment, forbearance Fees: Late fee, returned payment fee Discounts: Autopay Eligibility: Must be U.S. citizen or permanent resident Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: Yes Max undergraduate loan balance: $250,000 Max graduate loan balance: $250,000 Offers Parent PLUS refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.76%+	4.49%+
Fixed APR: 4.49%+ Variable APR: 4.76%+ Min. credit score: 700 Loan amount: $5,000 to $300,000 Loan terms (years): 5, 7, 10, 15 Max. undergraduate Loan Balance: $125,000 Time to Fund: 10 to 30 days Repayment options: Immediate repayment, forbearance Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from an eligible institution Customer service: Email, phone Soft credit check: Yes Cosigner release: After 12 months Loan servicer: LendKey Technologies Inc. Max. graduate Loan Balance: $175,000 Credible Review: LendKey Student Loans review Offers Parent PLUS Refinancing: No
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	N/A	5.5%+
Fixed APR: 5.5%+ Variable APR: N/A Min. credit score: 670 Loan amount: $10,000 up to the total amount Loan terms (years): 7, 10, 15 Repayment options: Military deferment, loans discharged upon death or disability Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans Customer service: Email, phone Soft credit check: Yes Cosigner release: No Loan servicer: AES Max. Undergraduate Loan Balance: No maximum Max. Gradaute Loan Balance: No maximum Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.34%+ - 10.29%+	7.06%+ - 13.72%+
Fixed APR: 5.34%+ - 10.29%+ Variable APR: 7.06%+ - 13.72%+ Min. credit score: 680 Loan amount: $5,000 to $500,000 (depending on degree) Loan terms (years): 5, 7, 10, 15, 20, 25 Time to fund: 3 business days Repayment options: Immediate, payment extension, reduced payment plan, rate reduction, term modification, extended grace period, interest only, rate and term modification, hardship forbearance, natural disaster forbearance, military forbearance, academic deferment Fees: Late fee, NSF fee Discounts: Autopay Eligibility: Must be a U.S. citizen or have permanent residency status with a valid U.S. Social Security number Customer service: Email, phone Soft credit check: Yes Cosigner release: After 24 months Loan servicer: Firstmark Services Max. undergraduate loan balance: $125,000 Max. graduate loan balance: $500,000 Offers Parent PLUS loans: Yes Min. income: $36,000
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	N/A	5.29%+
Fixed APR: 5.29%+ Variable APR: N/A Min. credit score: 680 Loan amount: $7,500 to $250,000 Loan terms (years): 5, 10, 15 Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000 Customer service: Email, phone Soft credit check: Does not disclose Cosigner release: No Loan servicer: Rhode Island Student Loan Authority Max. Undergraduate Loan Balance: $150,000 - $249,000 Max. Graduate Loan Balance: $200,000 - $249,000 Offers Parent PLUS Refinancing: Yes
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All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures

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Eric Rosenberg

Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.

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