Important Announcements

Starting on July 1, 2026, the interest rate reduction for borrowers enrolled in auto pay will go from 0.25% to 1%. This reduction is available to borrowers with Direct Loans disbursed on or after July 1st, 2012. Visit StudentAid.gov to learn more and enroll by 11:59 p.m. ET on Sept. 30, 2026, to receive the temporary benefit through June 30, 2028.

On March 10, 2026, a court order ended the Saving on a Valuable Education (SAVE) Plan. The U.S. Department of Education will contact impacted borrowers, who can explore and apply for other repayment plans. For more information, visit StudentAid.gov/courtactions.

On Oct. 30, 2025, the U.S. Department of Education published final Public Service Loan Forgiveness (PSLF) program regulations that will be effective on July 1, 2026. We'll provide updates when the regulations are implemented. For now, there are no impacts to borrowers, payment counts, or discharges.

Visit StudentAid.gov/publicservice for more information about PSLF and current program requirements.

For more information about employer eligibility, visit StudentAid.gov/pslf/employer-search.

To apply for PSLF, use the PSLF Help Tool at StudentAid.gov/pslf.

Important Update

PSLF and PSLF Buyback

The PSLF program is managed by the U.S. Department of Education not MOHELA. To learn more about your next steps, and general information on the programs, visit Studentaid.gov/PSLF or Studentaid.gov/PSLFbuyback.

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Important Announcements Contact Us

Repayment Plan Options

Repayment Plans

You can pick from repayment plans that base your monthly payment on your income or that give you a fixed monthly payment over a set repayment period.

FAST FACTS

  • Any borrower who takes out a new loan or consolidates existing loans on or after July 1, 2026 will be required to repay all their Direct Loans under the Repayment Assistance Plan or Tiered Standard Repayment Plan.

  • You can pick from repayment plans that base your monthly payment on your income or plans that give you a fixed monthly payment.

  • Repayment plans based on your income are a smart choice to lower your payment. The lower your income—or the larger your family size—the less you’ll pay each month.

  • If you don’t pick a repayment plan, we will place you on the Standard Repayment Plan (a 10-year fixed payment repayment plan), or the Tiered Standard Plan, depending on your loan disbursement date. These plans might result in a higher monthly payment for you. If you have any Direct loans made on or after 7/1/2026, your loans should be added to the Tiered Standard repayment plan.

Compare Repayment Plans

Loan Simulator  this link will open in a new window is the best way to compare the different repayment plans. You can use Loan Simulator  this link will open in a new window to find out which plans you’re eligible for and to see estimates for how much you would pay monthly and overall.

Fixed Term Repayment Plans

Standard (Level) Repayment

Eligible Loan Programs

Direct Loans and Federal Family Education Loan Program (FFELP) Loans

Loan Term

10 years (Option to extend up to 30 years for consolidated loans)

Payments

Fixed monthly payments

Advantages

This is the fastest and least expensive plan based on interest paid

Extended Repayment

Eligible Loan Programs

Direct Loans and FFELP

Loan Term

25 years

Payments

Fixed or graduated payments

Advantages

Lower monthly payments over a longer period of time

Graduated Repayment

Eligible Loan Programs

Direct Loans and FFELP

Loan Term

10 years (Option to extend up to 30 years for consolidated loans)

Payments

Payments start low and increase every 2 years

Advantages

Works well if you expect your income to increase over time

Income-Driven Repayment (IDR) Plans

Repayment Assistance (RAP)

Eligible Loan Programs

Direct Loans Only 1

Loan Term

Up to 30 years

Payments

Based on income and household size. Minimum monthly payment is $10.

Advantages

Potential reduced monthly payment amount based on income and household size.

Interest and principal subsidy may apply

May also be used with the Public Service Loan Forgiveness Program.

Pay As You Earn (PAYE)

Eligible Loan Programs

Direct Loans Only 1

Loan Term

20 years

Payments

Monthly payment generally set at 10% of discretionary income

Advantages

A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, you will remain on the same IDR plan, but your monthly payment will no longer be based on your income and instead change to the amount you would pay under a Standard 10-year repayment plan.

May also be used with the Public Service Loan Forgiveness Program

Income-Based Repayment (IBR)

Eligible Loan Programs

Direct Loans & FFELP 1

Loan Term

25 Years (20 years for new borrowers as of 7/1/2014)

Payments

Monthly payment generally set at 15% or discretionary income (10% for new borrowers as of 7/1/2014)

Advantages

A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, you will remain on the same IDR plan, but your monthly payment will no longer be based on your income and instead change to the amount you would pay under a Standard 10-year repayment plan.

Interest subsidy may apply

May also be used with the Public Service Loan Forgiveness Program.

Income-Contingent Repayment (ICR)

Eligible Loan Programs

Direct Loans Only 1

Loan Term

25 Years

Payments

Monthly payments set at the lesser of 20% of discretionary income or a percentage (based on income) of payment on a Standard Plan with a 12-year repayment period

Advantages

May also be used with the Public Service Loan Forgiveness Program

1 Additional eligibility requirements may apply.

Good to Know

  • Parent PLUS Loans do not qualify for IDR Plans. Borrowers with Parent PLUS loans may consolidate and request ICR if the consolidation disbursement date is prior to 7/1/2026.

  • If your consolidation loan was disbursed on or prior to 07/01/2006 and the consolidation loan includes Parent PLUS loans, your consolidation loan may not be eligible for IDR Plans.

  • FFELP loans owned by the Department of Education are eligible for the Income-Sensitive Repayment plan. Find out more about the Income-Sensitive Repayment plan at StudentAid.gov   this link will open in a new window .

Options to Postpone Repayment

If you are unable to make your payments, deferment or forbearance may be an option for you.