On the Extended Repayment Plan, borrowers can make reduced monthly payments for up to 25 years. While payments on the Extended Repayment plan may be much more affordable than the 10-Year Standard Repayment Plan, borrowers will typically pay more in interest as a result of the extended term.
Borrowers who qualify for the Extended Repayment Plan have the option to choose from a fixed payment or a graduated payment. Fixed payments will not change for the length of the repayment period, while graduated payments start out low and increase every few years.
Loans Eligible for Extended Repayment
- Direct Subsidized Stafford Loans
- Direct Unsubsidized Stafford Loans
- Direct PLUS Loans for Parents or Graduate Students
- Direct Consolidation Loans
- Subsidized FFEL Stafford Loans
- Unsubsidized FFEL Stafford Loans
- FFEL PLUS Loans for Parents or Graduate Students
- FFEL Consolidation Loans
To qualify for the Extended Repayment Plan, borrowers must have started borrowing after October 7, 1998, or must have had no outstanding balance on a loan before taking out a loan after October 7, 1998. Also, borrowers must have a total loan balance of over $30,000 to qualify. While both Direct and FFEL loans qualify for the Extended Repayment Plan, borrowers must owe over $30,000 in Direct loans or FFEL loans to qualify.
For instance, if a borrower owes $40,000 in outstanding Direct loans and $15,000 in outstanding FFEL loans, the Extended Repayment Plan can only be applied to the borrower’s Direct loans. A borrower with $15,000 in Direct loans and $25,000 in FFEL loans will not qualify for the Extended Repayment Plan on either loan balance.