Loan Repayment Options

Generally, when it comes to repaying your student loans, you can select a repayment plan that’s right for you and your financial situation. There are several options that are available for you to select from.

Payment Plans
Forgiveness Options
Other Loan Repayment Tips

Payment Plans:

Standard Repayment-

With the standard repayment plan, you will pay a fixed monthly amount each month until your loans are paid in full over a 10 year period. Monthly payments will be at least $50. As this plan allows you to pay your loan in full within the 10 year period, payments may be higher than it would be for other plans because your loans would be paid in the shortest amount of time. For that reason, you may pay the least in overall interest.

Other Considerations:

  • You will automatically be placed on the standard repayment plan unless you decide to choose another plan.
  • This plan works the best for someone who has steady monthly income and can afford the standard payment.

Standard Repayment Example: (Direct Loan at 6.8% interest rate)

Loan Amount Monthly Payment Months in Repayment Total Interest Paid Total Paid
$20,000 $230.16 120 $7,619.20 $27,619.20

Standard Repayment Plan Calculator

Graduated Repayment-

With this plan, your payments start out lower and gradually increase (typically every two years). The repayment plan is still over a 10 year period, so your loan payments will be higher near the end of your loan term.

Other Considerations:

  • Your monthly payment will never be less than the amount of interest that accrues between payments.
  • This plan works well for someone who has cash flow problems early on but expects for your income to increase steadily over time.

Graduated Repayment Example: (Direct Loan at 6.8% interest rate)

Loan Amount Monthly Payment Months in Repayment Total Interest Paid Total Paid

$158.04 Years 1-2
$194.14 Years 3-4
$233.59 Years 5-6
$283.98 Years 7-8
$345.25 Years 9-10

120 $9,111.11 $29,111.11

Graduated Repayment Plan Calculator

Extended Repayment-

Under the extended repayment plan, payments are stretched out up to 25 years. This will offer you a lower monthly payment over a longer period of time

Other Considerations:

  • Payments will be lower, but you’ll pay more in interest because you’re taking longer to repay your loans.
  • To qualify, you must have more than $30,000 in total outstanding principal and interest in federal loan debt disbursed on or after October 7, 1998
  • This plan works well for someone with larger loan debt and needs a lower monthly payment but does not qualify for the Income-Based Repayment plan.

Extended Repayment Example: (Direct Loan at 6.8% interest rate- Please note loan debt must exceed $30,000 in order to qualify for the Extended Repayment Option)

Loan Amount Monthly Payment Months in Repayment Total Interest Paid Total Paid
$31,000 $215.16 300 $33,548.00 $64,548.00

Extended Repayment Calculator

Income-Based Repayment-

This plan offers reduced monthly payments if you demonstrate a financial hardship based upon your loan debt, income and family size. If you pay under the IBR plan for 25 years of repayment and 300 payments, any remaining balance may be forgiven. Under the Healthcare and Education and Reconciliation act of 2010, anyone who qualifies for IBR and has a new loan in 2012 but none older than 2008, their IBR payment amount will be based on 10% of your discretionary income rather than 15%. Also under this new legislation any amount remaining after 20 years will be forgiven.

Other Considerations:

  • You will have to demonstrate that you have a high amount of debt relative to your income. To apply for IBR, you will need to submit a signed tax return, IRS consent form, paycheck stubs, or W-2’s. You will need to reapply for IBR every year.
  • Your payment may be adjusted based on changes in income and family size.
  • This plan is good for someone with lower earnings who is looking for an affordable payment based on their income and family size.
Income Based Repayment Calculator

Forgiveness Options:

  • Public Service Forgiveness

This program will forgive any remaining student loan debt after 10 years of payments for people who work in qualifying public service positions. Qualifying positions may include: military service, public safety, public education, social work, public defenders and more.

To be eligible you must have made 120 monthly payments on or after October 1, 2007 in the Direct Loan Program. You must also be employed in a public service job during the time the qualifying payments are made and at the time the loan is forgiven. For additional information, visit

  • Direct Loan Forgiveness for Teachers

This program is intended to encourage individuals to enter and continue working in the teaching profession. Individuals who teach full time for five consecutive, complete academic years in elementary or secondary schools serving low-income students and meet other qualifications may be eligible for up to $17,500 of forgiveness. For additional information, visit

  • Federal Employee Student Loan Program

The federal student loan repayment program permits federal agencies to repay federal student loans as a recruitment or retention incentive for candidates or current employees of the federal agency. For additional information, visit

  • Rural Opportunity Zones

Rural Opportunity Zones are 50 counties that have been authorized to offer one or both of the following financial incentives to new full-time residents:

  • Kansas income tax waivers for up to five years
  • Student loan repayments up to $15,000

For more information and participating counties

Other Loan Repayment Tips:

  1. Know who and how much you owe- You can find all of your outstanding federal loans by visiting . NSLDS-the National Student Loan Data System- tracks your federal loans until they are paid in full. For information, on private loans borrowed for educational purposes you may obtain a free copy of your credit report at
  2. You can change your repayment plan at any time by contacting your loan servicer.
  3. Make sure to notify your loan servicer if your name, address or telephone number changes to ensure you receive communications from them.
  4. If you are in school at least part-time, unemployed, in the military or meet other eligibility criteria you may be eligible to postpone your payments for a period of time by applying for a deferment.
  5. If you do not qualify for a deferment, you may be eligible to request a forbearance. Forbearance may temporarily lower or suspend your loan payments. Forbearances are allowed based on the discretion of your lender/loan servicer.


Direct loan consolidation allows borrowers to combine multiple federal student loans into one loan. This results in one single monthly payment with one loan holder. This option would often be best for those looking for monthly payment relief, who would not qualify for the Income Based Repayment Plan. For more information, or the application to apply for consolidation please visit www.studentloansgov

Other Considerations:

  • The overall total cost of repayment could significantly increase.
  • Consolidation provides an overall lower monthly payment, but increases the length of time you will pay back the loan.
  • You could lose borrower benefits offered under repayment plans for the original loans.
Consolidation Loan Repayment Calculator