Loan Repayment Plans

Federal Perkins & Institutional Loans

Federal Perkins Loans and Brown University Institutional Loans offer only one type of repayment plan. The loans are repaid to the Brown University Loan Office (servicer) in equal monthly installments over a maximum 10 year repayment term. Learn more about Servicer & Making Payments.

Federal Stafford & PLUS Loans

Federal Stafford & PLUS Loans offer a variety of repayment plans designed to fit different needs and income levels.  The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. 

Borrowers must notify their federal loan servicer of the repayment plan they wish to select. Although you’re asked to choose a repayment plan when you first begin repayment, you might want to switch repayment plans later if a different plan would work better for your current financial situation. You can change plans any time as long as the maximum repayment period under your new plan is longer than the time your Direct Loans have already been in repayment. Learn more about Servicer & Making Payments.

 Go to Repayment Plans and Calculators for more information about the various repayment plans and to calculate your estimated repayment amount under each of the different plans.

Standard: Fixed monthly payments of at least $50 over a maximum 10 year period.

Extended: Fixed monthly payments of at least $50 over a period of 12 to 30 years.

Graduated: Monthly payments increase every two years over a period of 12 to 30 years. Must have more than $30,000 outstanding to qualify. 

Pay As You Earn: Available to those who are new borrowers on or after 10/1/2007 and who receive a Direct Loan disbursement on or after 10/1/2011. Monthly payments are based on your annual adjusted gross income, your family size, and your state of residence. Payments will not exceed 10% of your discretionary income. After 25 years, any remaining debt will be discharged, but you may have to pay taxes on the amount forgiven.

Income Contingent: Monthly payments are based on your annual adjusted gross income, family size and total amount of Direct Loans, spousal income included. Payments will not exceed standard repayment term.

Income Based: Available as of July 1, 2009, available to borrowers who demonstrate a partial financial hardship. Monthly payments are based on your annual adjusted gross income, your family size, and your state of residence. Payments will not exceed 15% of your discretionary income. After 25 years, any remaining debt will be discharged, but you may have to pay taxes on the amount forgiven.

Tips & Resources

Direct Loan Repayment Plans Chart
Financial Awareness Counseling @ StudentLoans.gov
Repayment Calculators @ StudentAid.ed.gov
Calculators @ FinAid.org