COMPARE YOUR OPTIONS

Repayment Options for William D. Ford Federal Direct ("Direct Loans") and Federal Family Education Loan Program ("FFELP") Loans

When your federal loans enter repayment, they will automatically be placed into a Standard Repayment Plan.

This is the fastest way to repay your loans and you’ll pay less over time than other options*.

Check out the information below to learn about some other common repayment options for Direct and FFELP loans.

If your loans qualify, the fastest way to apply is online, or, depending on the option you choose, by phone. This is not an all-inclusive list of every option that may be available.

To learn more, you can also use the Repayment Estimator at StudentAid.gov to evaluate your federal student loan options.

Tip for Navient customers: You can easily identify your loan type on the Account Summary page after logging into (or creating) your online account at Navient.com.

Standard Repayment Plan


Description:

  • This plan has a repayment schedule with fixed Monthly Payment Amounts of principal and interest that will be due for the contractual repayment term.

Consequences:

  • This is the fastest way to repay your loans and you’ll pay less over time than other options*.

How to Apply:

  • Not applicable – your loans will automatically be placed into a Standard Repayment Plan.

Graduated Repayment Plan


Eligible Loan Types: FFELP and Direct Loans.

Description:

  • Monthly Payments are lower at first and then increase, usually every two years.
  • Repayment term of up to 10 years (or up to 30 years for consolidation loans)*.
  • May be combined with Extended Repayment.

Consequences:

  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.

How to Apply:

  • Online at Navient.com, or
  • By phone.

Extended Repayment


Eligible Loan Types: FFELP and Direct Loans for borrowers with more than $30,000 in Direct Loan balances or more than $30,000 in FFELP loan balances.

Description:

  • Term extension that may be combined with Standard or Graduated Repayment Plans.
  • Repayment term of up to 25 years*. This typically results in lower Monthly Payments made over a longer repayment period.

Consequences:

  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.
  • Longer time to pay off loans.

How to Apply:

  • Online at Navient.com, or
  • By phone.

Revised Pay As You Earn (REPAYE) Repayment Plan


Eligible Loan Types: Direct Loans (excluding Parent PLUS and consolidation loans that repaid Parent PLUS).

Description:

  • Income-Driven Repayment (IDR) Plan with Monthly Payments as low as $0 for eligible borrowers.
  • Monthly Payments are calculated at 10% of discretionary income.
  • May lead to forgiveness. Any outstanding loan balance will be forgiven after 20 to 25 years of qualifying repayment. If you only have REPAYE-eligible loans for undergraduate study, your forgiveness period will be 20 years. If any of your REPAYE-eligible loans were received for graduate or professional study, your forgiveness period will be 25 years.
  • Annual recertification is required.
  • If your Monthly Payment is below the interest that accrues, you aren’t responsible for the difference between your Monthly Payment Amount and the interest that accrues on subsidized loans** for the first three years in the plan. After this time and for any unsubsidized loans**, you are only responsible for half of the difference between your Monthly Payment Amount and the interest that accrues.
  • Learn more about whether an IDR plan might be right for you.

Consequences:

  • Your Monthly Payment may be more than a 10-year Standard Repayment Plan.
  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.
  • It is important to renew your plan. If you miss the annual recertification deadline, Unpaid Interest may be capitalized (added to the Unpaid Principal) and your Monthly Payment Amount may increase.
  • Unpaid Interest may be capitalized (added to the Unpaid Principal) if you leave the plan.
  • If you leave REPAYE and later request to re-enter the plan, your new REPAYE payment amount may be increased. A calculation will be completed to determine the difference between total amount you would have paid under REPAYE if you hadn’t left the plan and the amount you were required to pay after leaving REPAYE. If you were required to pay less by leaving REPAYE, your new REPAYE Monthly Payment Amount will be increased by this calculated amount divided over the number of months remaining in your forgiveness period.

How to Apply:

  • Online at StudentAid.gov, or
  • Complete the Income-Driven Repayment (IDR) Plan Request form and return it to us.
  • Supporting documentation may also be required.

Pay As You Earn (PAYE) Repayment Plan


Eligible Loan Types: Direct Loans (excluding Parent PLUS and consolidation loans that repaid Parent PLUS). Must be a new borrower on or after October 1, 2007. Must have a large eligible loan debt relative to income.

Description:

  • Income-Driven Repayment (IDR) Plan with Monthly Payments as low as $0 for eligible borrowers.
  • You must have a "partial financial hardship".
  • Monthly Payments are calculated at 10% of discretionary income and will never be more than a 10-year Standard Repayment Plan.
  • May lead to forgiveness. Any outstanding loan balance will be forgiven after 20 years of qualifying repayment.
  • Annual recertification is required.
  • If your Monthly Payment is below the interest that accrues, you aren’t responsible for the difference between your Monthly Payment Amount and the interest that accrues on subsidized loans** for the first three years in the plan.
  • Learn more about whether an IDR plan might be right for you.

Consequences:

  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.
  • It is important to renew your plan. If you miss the annual recertification deadline, Unpaid Interest may be capitalized (added to the Unpaid Principal) until your Unpaid Principal balance is 10% greater than when you entered PAYE. Your Monthly Payment Amount may also increase.
  • Unpaid Interest may also be capitalized if you leave the plan or if you no longer have a "partial financial hardship".

How to Apply:

  • Online at StudentAid.gov, or
  • Complete the Income-Driven Repayment (IDR) Plan Request form and return it to us.
  • Supporting documentation may also be required.

Income-Based Repayment (IBR) Plan


Eligible Loan Types: FFELP and Direct Loans (excluding Parent PLUS and consolidation loans that repaid Parent PLUS). Must have a large eligible loan debt relative to income.

Description:

  • Income-Driven Repayment (IDR) Plan with Monthly Payments as low as $0 for eligible borrowers.
  • You must have a "partial financial hardship".
  • Monthly Payments are calculated at 15% of discretionary income (or 10% if you are a new borrower on or after July 1, 2014) and will never be more than a 10-year Standard Repayment Plan.
  • May lead to forgiveness. Any outstanding loan balance will be forgiven after 20 to 25 years of qualifying repayment. If you are a new borrower on or after July 1, 2014, your forgiveness period will be 20 years. If you are not a new borrower on or after July 1, 2014, your forgiveness period will be 25 years.
  • Annual recertification is required.
  • You aren’t responsible for the difference between your Monthly Payment Amount and the interest that accrues on subsidized loans** for the first three years in the plan.
  • Learn more about whether an IDR plan might be right for you.

Consequences:

  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.
  • It is important to renew your plan. If you miss the annual recertification deadline, Unpaid Interest may be capitalized (added to the Unpaid Principal) and your Monthly Payment Amount may also increase.
  • Unpaid Interest may also be capitalized if you leave the plan or if you no longer have a "partial financial hardship".

How to Apply:

  • Online at StudentAid.gov, or
  • Complete the Income-Driven Repayment (IDR) Plan Request form and return it to us.
  • Supporting documentation may also be required.

Income-Contingent Repayment (ICR) Plan


Eligible Loan Types: Direct Loans (excluding Parent PLUS). Direct consolidation loans that repaid Parent PLUS loans are eligible if the consolidation loan application was received on or after July 1, 2006.

Description:

  • Income-Driven Repayment (IDR) Plan with Monthly Payments as low as $0 for eligible borrowers.
  • Monthly Payments are calculated at the lesser of 20% of discretionary income OR the amount you’d pay under a fixed payment plan over a 12-year period, adjusted according to your income.
  • May lead to forgiveness. Any outstanding loan balance will be forgiven after 25 years of qualifying repayment.
  • Annual recertification is required.
  • Learn more about whether an IDR plan might be right for you.

Consequences:

  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.
  • It is important to renew your plan. If you miss the annual recertification deadline, your Monthly Payment Amount may increase.
  • If the amount of your Monthly Payment is less than the amount of interest that accrues, the Unpaid Interest is capitalized annually until the outstanding principal balance on your loans is 10% greater than when your loans entered repayment.
  • Unlike other IDR plans, you are responsible for the interest that accrues on all loans.

How to Apply:

  • Online at StudentAid.gov, or
  • Complete the Income-Driven Repayment (IDR) Plan Request form and return it to us.
  • Supporting documentation may also required.

Income-Sensitive Repayment (ISR) Plan


Eligible Loan Types: FFELP Loans.

Description:

  • Monthly Payments are based on a percentage of your gross monthly income that you may select at the discretion of your loan holder. Navient typically provides for ISR payments between 4 and 25% of your gross monthly income.
  • Annual recertification is required.
  • Certain types of forbearance are used in connection with ISR when Monthly Payments are equal to or less than the amount of accruing interest.
  • Repayment term of up to 10 years (or up to 30 years for consolidation loans), excluding forbearance time, and assuming continuous, uninterrupted, on-time payments are made.

Consequences:

  • Your total loan cost will typically be greater over time than the Standard Repayment Plan*.
  • It is important to renew your plan. If you miss the annual recertification deadline, your Monthly Payment Amount may increase.
  • Unpaid Interest may be capitalized annually (added to the Unpaid Principal) during periods of forbearance in connection with ISR.

How to Apply:

  • Online at Navient.com, or
  • Complete the Income-Sensitive Repayment (ISR) Plan Request form and return it to us.
  • Supporting documentation is required.

Direct Loan Consolidation


Eligible Loan Types: FFELP, Direct, and other eligible federal loans. Spousal or joint consolidation loans are not eligible to be re-consolidated into a Direct consolidation loan.

Description:

  • Combines eligible federal loans into a single Direct consolidation loan.
  • Consolidating FFELP loans into the Direct Loan program allows access to repayment plans or forgiveness options created solely for Direct Loans, including Public Service Loan Forgiveness (PSLF).
  • Repayment term of up to 30 years.
  • You may choose which loans to include or opt to exclude loans from consolidation.
  • Learn more about the pros and cons of consolidating some or all of your loans.

Consequences:

  • The interest rate on your consolidation loan may be higher than what you’re currently paying. The fixed interest rate is based on a weighted average of the contractual rates on the loans being consolidated, rounded up to the nearest higher one-eighth of one percent.
  • You may lose borrower benefits from your current loans, including interest rate reductions, timely payment incentives, or some loan cancellation benefits.
  • You may lose benefits under the Servicemembers Civil Relief Act (SCRA) if you consolidate while on active duty.
  • Payments on loans being consolidated are not counted towards loan forgiveness on the new Direct consolidation loan, including PSLF and forgiveness under IDR plans.
  • Unpaid Interest on your loans being consolidated will be capitalized (added to the Unpaid Principal).

How to Apply:

  • Online at StudentAid.gov, or
  • Complete the Direct Consolidation Loan Application and Promissory Note and return it to your selected consolidation loan servicer.

Deferment


Eligible Loan Types: FFELP and Direct Loans.

Description:

  • Temporarily postpones Monthly Payments.
  • Eligibility requirements vary by type of deferment. Examples include cancer treatment, economic hardship, in-school, military service and post-active duty, rehabilitation training program, and unemployment deferment.
  • Different deferment options may be available based on loan program and disbursement dates.
  • Available deferment time is often limited and varies by deferment type.
  • You aren’t responsible for the interest that accrues on subsidized loans** during deferment.
  • You have the option of making a payment at any time during the deferment period. You may also shorten or cancel your deferment and return to making Monthly Payments.

Consequences:

  • You should consider your current and longer-term situation, the likelihood of any changes, and whether an IDR or other reduced repayment plan is a better option for you than deferment. IDR plans offer Monthly Payment Amounts of as little as $0 for eligible borrowers.
  • With limited exception, accruing interest during deferment continues to remain your responsibility on unsubsidized loans**. Unpaid Interest may be capitalized (added to the Unpaid Principal), which may increase your Monthly Payment Amount and total loan cost.
  • Use of deferment may cause the loss of borrower benefits – such as repayment incentives that can lower your interest rate. The Auto Pay interest rate reduction (if eligible) will be suspended during periods of deferment when no payments are due.
  • With the exception of economic hardship deferment, periods of deferment are not counted as qualifying repayment towards IDR loan forgiveness.
  • Payments made during deferment periods are not qualifying payments towards Public Service Loan Forgiveness (PSLF) for Direct Loans.

How to Apply:

  • Online at Navient.com, or
  • Complete a deferment request form and return it to us.
  • Supporting documentation may also be required.

Forbearance


Eligible Loan Types: FFELP and Direct Loans.

Description:

  • Temporarily postpones or reduces Monthly Payments.
  • Eligibility requirements vary by type of forbearance. Examples include general forbearance, mandatory forbearance, student loan debt burden forbearance, and teacher loan forgiveness forbearance.
  • Available forbearance time is often limited and varies by forbearance type.
  • You have the option of making a payment at any time during the forbearance period. You may also shorten or cancel your forbearance and return to making Monthly Payments.

Consequences:

  • You should consider your current and longer-term situation, the likelihood of any changes, and whether an IDR or other reduced repayment plan is a better option for you than forbearance. IDR plans offer Monthly Payment Amounts of as little as $0 for eligible borrowers.
  • Accruing interest during forbearance continues to remain your responsibility for both subsidized** and unsubsidized loans**. Unpaid Interest may be capitalized (added to the Unpaid Principal), which may increase your Monthly Payment Amount and total loan cost.
  • Use of forbearance may cause the loss of borrower benefits – such as repayment incentives that can lower your interest rate. The Auto Pay interest rate reduction (if eligible) will be suspended during periods of forbearance when no payments are due.
  • With limited exception, periods of forbearance are not counted as qualifying repayment towards Public Service Loan Forgiveness (PSLF) for Direct Loans or IDR loan forgiveness.

How to Apply:

  • Online at Navient.com, or
  • Complete a forbearance request form and return it to us.
  • Some forbearance types may be requested by phone.
  • Supporting documentation may also be required.

Loan forgiveness, cancellation, and discharge


Eligible Loan Types: FFELP and Direct Loans.

Description:

  • You will no longer be required to repay all or part of your outstanding loan balance if you are eligible for forgiveness, cancellation, or discharge.
  • Eligibility requirements and limitations on the amount of the loan balance available to be forgiven vary by type of forgiveness, cancellation, or discharge.
  • Examples include Teacher Loan Forgiveness (TLF), Public Service Loan Forgiveness for Direct Loans (PSLF), Total and Permanent Disability (TPD) discharge, Defense to Repayment forgiveness, and discharge due to death.

Consequences:

  • Forgiveness options like TLF and PSLF require that qualifying conditions be met for five to 10 years before you may be eligible for forgiveness. Be sure to learn more about eligibility to stay on the right track.
  • You should consult your tax advisor concerning the income tax consequences of any loan forgiveness, cancellation, or discharge.

How to Apply:

  • Varies by type of forgiveness, cancellation, or discharge.
  • Visit StudentAid.gov or contact us for details.
  • Supporting documentation is also required.

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