Graduated Repayment Plan

Overview

The Graduated Repayment Plan offers lower monthly payments that increase every two years. The increases are pre-determined and you can take up to 25 years to repay under this plan. This plan could be a good option if you know your income will increase over time. You will pay more interest over time under this plan than you would under the Standard Repayment Plan, but your monthly payment will be more affordable.

Eligible Federal Loans
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • Direct Consolidation Loans
  • FFEL Stafford Loans
  • FFEL PLUS Loans
  • FFEL Consolidation Loans
FFEL loans were discontinued on July 1, 2010.
Monthly Payments for Federal Loans (except consolidation)

You will start with a lower monthly payment of at least the amount of interest that accrues between payments. Your payment will also not exceed three times any other payment under the plan.

Monthly Payments for Federal Consolidation Loans

Payments start our low and increase every two years over a period of 10 to 30 years. Your monthly payent will not be less than the interest that accrues between payments or more than three times any payment under this plan.

The amount of time you will have to reapy your loan is based on the total amount of education debt you owe on all student loans including federal and private student loans that are not part of your consolidation loan.

Here are the maximum repayment terms for Direct or FFEL Consolidaton Loans based on total education debt:

Total Education DebtRepayment Term
$0 - $7,49910 years
$7,500 - $9,99912 years
$10,000 - $19,99915 years
$20,000 - $39,99920 years
$40,000 - $59,99925 years
$60,000 or more30 years