Extended Fixed Repayment Plan

The Extended Fixed Repayment Plan helps you reduce your monthly student loan payments by giving you more time to pay back student loans, along with many of the same benefits of the Standard Repayment Plan.

If you have more than $30,000 in student loan debt on a William D. Ford Federal Direct Loan (Direct Loan) or a Federal Family Education Loan (FFEL), the Extended Fixed Repayment Plan may be a great option for you to pay back your student loans over a longer period – and in smaller payments.

 

How to Qualify for an Extended Fixed Repayment Plan

The requirements for the Extended Fixed Repayment Plan are the same as with the Extended Graduated Repayment Plan, including what types of federal student loans are eligible to be converted into the plan. These loans include:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • Direct Consolidation Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • FFEL PLUS Loans
  • FFEL Consolidation Loans

Both Direct Loan and FFEL Loan borrowers will also be required to owe more than $30,000 on student loans, with no outstanding balance on these loans before October 7, 1998. While these loans can be combined under the Extended Fixed Repayment Plan, they must each have more than $30,000 in student debt to be eligible. Otherwise, only the loan with more than $30,000 in debt will be considered for approval.

Find out if you are eligible for the Extended Fixed Repayment Plan for free.

SEE IF YOU QUALIFY

 

How the Extended Fixed Repayment Plan Works

Unlike the Extended Graduated Repayment Plan, which offers interest-only payments for the first two years, the Extended Fixed Repayment Plan offers a fixed interest rate over the life of the loan. This means you will always pay the same amount towards interest and principal throughout the repayment period, if your payments are never missed.

Under the Extended Fixed Repayment Plan, your payments will likely be lower than with other student loan repayment plans, because it extends the repayment period for up to 25 years, depending on the amount you owe. While this does result in more interest being paid on the loans over the longer term, it may be the ideal choice if you need more of your income for other types of expenses.

For more details on the Extended Fixed Repayment Plan, speak with student loan specialist by phone at (800) 771-6358.