The Standard Repayment Plan helps you pay off federal student loan debt more quickly by putting more of your monthly student loan payments towards the principal amount until the loan is paid off completely.
If you have a federal student loan, and you haven’t yet applied for another student loan repayment or student loan forgiveness program, your loan will likely fall under the 10-year Standard Repayment Plan. As the default option for borrowers and loan servicers, it is the most common repayment plan for federal student loans.
How to Qualify for the Standard Repayment Plan
The Standard Repayment Plan will automatically be applied to your federal student loans as part of a standard servicer agreement. Currently, all federal student loans are eligible for the Standard Repayment Plan. However, some consolidation loans are treated differently, depending on the balance owed to the student loan lender.
The federal student loans included in the Standard Repayment Plan 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
Private student loans are not included in the Standard Repayment Plan. If you have a private loan, your student loan servicer may have other options for repayment.
Find out if the Standard Payment Plan is your best option for free.
How the Standard Repayment Plan Works
While all federal student loans are eligible for the Standard Repayment Plan, monthly payments on consolidated federal student loans vary based on the amount owed by the borrower.
If you have unconsolidated federal student loans, your monthly payment under the Standard Repayment Plan is based on the amount owed to the servicer, and will be a fixed amount for the 10-year repayment period. The minimum monthly payment for these types of loans is $50 each month.
Consolidated loans, including Direct Consolidation Loans and FFEL Consolidation Loans, may take anywhere from 10 to 30 years to pay off completely, depending on the amount you owe. Under this type of plan, loan services also consider any other student loan debt as part of the plan. Like other Standard Repayment Plan loans, minimum monthly payments for consolidated federal student loans are $50.
For either option, the advantage of the Standard Repayment Plan is how quickly you can pay off the balance of your student loans, with each monthly payment increasingly going towards your principal amount. However, monthly payments made under the Standard Repayment Plan are typically much higher than other repayment programs, and don’t offer student loan forgiveness as an incentive.
For more details on the Standard Repayment Plan, speak with a student loan specialist by phone at 800-771-6358