Federal Student Loans

Balance-Based Repayment Plans

Standard Repayment

Under the standard repayment option, you pay your student loan over 10 years at a level payment. Your payments cover interest and principal, and the balance is paid in full at the end of 10 years. Obviously, if you are carrying a large balance, your monthly payment will be large as well.

Graduated Repayment

Under the graduated repayment option, you pay your student loan over 10 years. Your payments start off low, and increase every two years. Your balance is paid in full at the end of 10 years, but you'll end up paying more under this option than you would under the standard repayment plan because your payments likely won't start to cover the principal balance as quickly.

Extended Repayment

Under this option, you can extend your payments for a period of up to 25 years as long as you have more than $30,000 in outstanding direct loans or FFEL Program loans. Your monthly payments will be lower than under the 10-year Standard Plan or the Graduated Repayment Plan, but you’ll end up paying more in total.

Extended Graduated Repayment

As with the Extended Repayment option, you can stretch out payments for a period of up to 25 years as long as you have more than $30,000 in outstanding direct loans or FFEL Program loans. Payments start low and increase every 2 years, which means you'll pay far more over the life of the loan than any of the other plans.

Contact San Diego Bankruptcy Attorney Chis Bush

Call (619) 678-1134 for answers to your specific questions about Federal Student Loan Debt and how Chapter 7 bankruptcy or Chapter 13 debt reorganization can help improve your financial situation.