What is the Standard Repayment Plan for Federal Student Loans?

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Although access to several income-based repayment options is one perk of federal student loans, most borrowers will start making their loan payments with the basic Standard Repayment Plan.

With the exception of PLUS Loans, federal student loan borrowers can expect a six-month grace period after graduating, leaving school, or dropping below half-time enrollment before they must start making loan payments. While interest does accrue during the grace period, no payments are required.

If your grace period ended after March 13, 2022, you don’t owe payments and your loans aren’t accruing interest until September 1, 2023, when the Covid student loan payment pause officially ends.

Here’s what you need to know about the Standard Repayment Plan:

• How does the Standard Repayment Plan work?
• What are the pros and cons of the Standard Repayment Plan?
• This is how much you could pay on a Standard Repayment Plan
• Other repayment plans you may qualify for
• Consolidating or refinancing your student loans could help you in the long run

How does the Standard Repayment Plan work?

Unless you choose a different income-based repayment plan, federal student loans typically default to the Standard Repayment Plan.

The Standard Repayment Plan gives you a fixed monthly payment amount of at least $50. This means you’ll have a predictable monthly payment that doesn’t change over the life of the loan. The repayment period is 10 years for the majority of federal student loans.

However, borrowers with a Direct Consolidation Loan may have a different repayment period. Like other federal student loans, consolidation loan borrowers will pay a fixed monthly amount of at least $50. But their repayment period could be as short as 10 years or as long as 30 years.

The length of the standard repayment period for Direct Consolidation Loans is determined by the amount of your total loan debt according to the U.S. Department of Education. Here’s how long you can expect to make payments on a Standard Repayment Plan if you have a federal Direct Consolidation Loan:

Which loans are eligible for the Standard Repayment Plan?

The following federal student loans qualify for the Standard Repayment Plan:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct PLUS Loans
• Direct Consolidation Loans
• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans
• FFEL PLUS Loans
• FFEL Consolidation Loans

How are payments calculated under the Standard Repayment Plan?

Your payments under the Standard Repayment Plan are spread out equally over 10 years to 30 years.

The process of paying your loans off in equal installments is called amortization, and it works similarly to how you’d pay off an auto or mortgage loan. The minimum payment for most student loans is $50 per month.

What are the pros and cons of the Standard Repayment Plan?

The Standard Repayment Plan has benefits and drawbacks to consider:

Pros

• Allows you to focus on other financial goals after you make all your payments
• Compared to income-based repayment plans, you’ll pay less interest on the standard plan.
• Keeping the Standard Repayment Plan with federal student loans means you can access perks like deferment, forbearance, forgiveness, or income-based repayment plans.

Cons

• The Standard Repayment Plan may have a higher monthly payment amount than other repayment plans.
• Since interest rates for federal student loans are fixed, remaining on the Standard Repayment Plan rather than refinancing could cost more over the life of the loan.

This is how much you could pay on a Standard Repayment Plan

Under the Standard Repayment Plan, your payment will generally be around or slightly above 1% of your student loan balance.

For example, if you have a $10,000 balance, your monthly payment would be around $100. With a $20,000 balance, you’d pay around $200 per month, and so on.

Here are some more examples based on federal student loan interest rates for the 2022-23 school year:

Monthly payment

Total payments

Learn More: How Often Can You Refinance Student Loans?

Other repayment plans you may qualify for

While the Standard Repayment Plan is the default, it’s not always the most affordable option. If you’re struggling to make your payments, consider these alternative federal student loan repayment options:

• Extended Repayment Plan: Under the Extended Repayment Plan, loans are amortized over 25 years instead of 10. You must have a balance of at least $30,000 in Direct Loans to qualify. Keep in mind that with a longer repayment period, total interest costs are much higher.
• Graduated Repayment Plan: Under graduated repayment, you’ll start out with a smaller payment that gradually goes up over a 10-year repayment schedule. A Graduated Repayment Plan can be a good idea if you have a low income that you expect to increase over time.

Income-driven repayment plans

The U.S. Department of Education offers four income-driven repayment (IDR) plans. You may prefer one of these plans over the Standard Repayment Plan if you have a low income. Under an IDR plan, your payments are based on your monthly income and family size, which could lower your payment and help you avoid defaulting on your loans. At the end of the repayment period (20 to 25 years, depending on the plan), your remaining loan balance is forgiven. The four plans are:

• Revised Pay As You Earn Repayment Plan (REPAYE Plan) generally sets your monthly payment at 10% of your discretionary income. This plan has a repayment period of 20 years for undergraduate loans and 25 years for graduate loans.
• Pay As You Earn Repayment Plan (PAYE Plan) sets your payment at 10% of your discretionary income, but no more than you’d pay per month with the 10-year Standard Repayment Plan. This plan has a repayment period of 20 years.
• Income-Based Repayment Plan (IBR Plan) also sets your payment at 10% of your discretionary income, but no more than you’d pay per month with the 10-year Standard Repayment Plan. This plan has a repayment period of 20 years (for new borrowers after July 1, 2014).
• Income-Contingent Repayment Plan (ICR Plan) sets your monthly payment as the smaller amount of either 20% of your discretionary income or what you’d pay on a fixed 12-year repayment plan. This plan has a repayment period of 25 years.

Student loan forgiveness programs

Several federal, state, and local student loan forgiveness programs might be available to you, especially if you work in public service or as a teacher.

• Public Service Loan Forgiveness requires you to work full-time for a not-for-profit or government organization and make 120 qualifying monthly loan payments while working full-time for a qualifying employer.
• Teacher Loan Forgiveness requires you to teach full-time for five complete and consecutive academic years in a low-income school to be eligible to have up to $17,500 of your federal student debt forgiven.

Be sure to compare your total costs over time before making a switch from the Standard Repayment Plan. Our student loan repayment calculator can help you understand how changing your repayment term can affect your student loan costs.

Learn More: Private Student Loan Repayment Options

Consolidating or refinancing your student loans could help you in the long run

Outside of various repayment plans, two other options might help if you’re struggling with your student loans:

• Federal student loan consolidation: If you have multiple federal student loans, consolidation could help you with repayment by combining your monthly payments into one. With a Direct Consolidation Loan, you could extend your repayment term up to 30 years, which will lower your monthly payment — but remember that an extended term means paying more interest in the long run. Also, you may not reduce your interest rate with a Direct Consolidation Loan: Your rate will be a weighted average of the rate you were paying on all the loans you consolidate.
• Private student loan refinancing: Another option is to refinance your student loans into a single private student loan. With student loan refinancing, you might be able to get a lower interest rate or lower monthly payment, depending on your credit. But keep in mind that if you refinance your federal student loans into a private loan, you’ll permanently lose access to federal benefits, such as income-driven repayment plans, deferment, and forbearance.

If you decide to refinance your student loans, be sure to shop around and consider multiple lenders to find the right loan for you. You can do this easily with Credible — all you have to do is fill out a single form and you can see your rates in two minutes.

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	5.35%+	3.99%+
Fixed APR: 3.99%+ Variable APR: 5.35%+ 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	7.02%+1	5.89%+1
Fixed APR: 5.89%+1 Variable APR: 7.02%+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	6.99%+2	6.99%+2
Fixed APR: 6.99%+2 Variable APR: 6.99%+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	8.07%+5	6.0%+5
Fixed APR: 6.0%+5 Variable APR: 8.07%+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 24 months Loan servicer: Firstmark Services 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	5.28%+3	4.84%+3
Fixed APR: 4.84%+3 Variable APR: 5.28%+3 Min. credit score: 680 Loan amount: $10,000 to $250,000 Loan terms (years): 5, 7, 10, 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	8.5%+4	6.15%+4
Fixed APR: 6.15%+4 Variable APR: 8.5%+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	5.54%+	5.24%+
Fixed APR: 5.24%+ Variable APR: 5.54%+ 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	6.2%+
Fixed APR: 6.2%+ 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	7.12%+ - 11.19%+8	7.60%+ - 14.50%+8
Fixed APR: 7.12%+ - 11.19%+8 Variable APR: 7.60%+ - 14.50%+8 Min. credit score: Mid-to-high 600's FICO8 Loan amount: $5,000 to $500,000 (depending on degree) Loan terms (years): 5, 7, 10, 15, 20, 25 years8 Time to fund: 3 business days Repayment options: Immediate Fees: Late fee, NSF fee Discounts: Autopay8 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: Yes8 Cosigner release: After 24 months8 Loan servicer: Firstmark Services Max. undergraduate loan balance: $125,000 Max. graduate loan balance: $500,000 Offers Parent PLUS loans: Yes Min. income: You or your cosigner must meet Nelnet Bank's income criteria
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	6.34%+
Fixed APR: 6.34%+ 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  | 8Nelnet Bank Disclosures

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Keep Reading: Statute of Limitations on Private Student Loans: State Guide

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Emily Guy Birken

Emily Guy Birken is a Credible authority on student loans and personal finance. Her work has been featured by Forbes, Kiplinger’s, Huffington Post, MSN Money, and The Washington Post online.

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