Choose a Repayment Plan and Payoff Strategies that Work for You
Repayment Plan Options
Regardless of the repayment plan, your strategy will be to repay your loans as quickly as possible. Select a plan with a monthly payment that fits your budget, and keep in mind that you can switch plans if your needs change.
- Standard Repayment Plan: Fixed payments over 10 years. Forces you to pay your loans with a consistent monthly payment and in ten years.
- Graduated Repayment Plan: Payments start low and increase every two years over 10 years. Allows you to start with a lower monthly payment but still finish paying within ten years.
- Income Driven Repayment Plan: There are four: SAVE, PAYE, IBR, and ICR. These are based on your household income, tax filing status, and household size. May be the most affordable. But be cautious of how long it may take you to repay. If you want to keep other forgiveness programs as an option, an IDR plan may be best.
Use our traditional plan calculator and/or the FSA Loan Simulator to understand your monthly payment options.
Pay Off Strategies
Setting a payoff goal helps you determine how much to contribute each month or year to achieve loan repayment within your desired timeframe. Beyond making your required monthly payments, consider the following strategies to accelerate your repayment.
- Extra Monthly Payments: Increase your monthly payments to pay your balance faster and reduce the amount you pay overall.
- Lump Sum Payments: Make additional lump sum payments to pay your balance faster and reduce the amount you pay overall.
Tip: Find out if your employer or state offer loan repayment assistance programs that may help you pay off your debt sooner.
