Repayment Plan Comparison
Compare the main federal repayment plans side by side. See the monthly payment, total paid, total interest, and any forgiven balance for each.
Plan Comparison
| Plan | Initial Payment | Total Paid | Total Interest | Time | Forgiven |
|---|
The Main Federal Repayment Plans
| Plan | Term | Payment Shape | Best For |
|---|---|---|---|
| Standard | 10 years | Fixed | Lowest total interest |
| Graduated | 10 years | Starts low, rises every 2 years | Expecting income growth |
| Extended | 25 years | Fixed (or graduated) | Lower monthly payment on large balances |
| Income-Based (IBR) | 20-25 years | 10-15% of discretionary income | Low income, high balance, or forgiveness |
The Extended plan generally requires a balance above $30,000. Income-driven plans recalculate your payment annually based on your income and family size.
The Real Trade-Off: Interest vs. Cash Flow
Every plan except Standard trades more total interest for a lower monthly payment:
- Standard — highest payment, lowest interest. The baseline.
- Graduated — lower payments early, more interest than Standard, same 10-year term.
- Extended — much lower payment, but 15 extra years of interest. On large balances the extra interest is significant.
- Income-driven — lowest payment when income is low; total cost depends entirely on whether you reach forgiveness.
When Forgiveness Changes the Math
If you expect your remaining balance to be forgiven — through Public Service Loan Forgiveness after 120 qualifying payments, or through long-term IDR forgiveness after 20-25 years — then paying more interest along the way matters much less. The goal shifts from "minimize interest" to "minimize what you pay before forgiveness."
In that case, the lowest qualifying payment is usually optimal. See our PSLF calculator to check your progress.
If you do not expect forgiveness, the Standard plan is usually the cheapest path — and paying extra makes it cheaper still. See our extra payment calculator.
2026 Changes to Repayment Plans
The One Big Beautiful Bill Act took effect on July 1, 2026. Loans disbursed on or after that date have a narrower set of options, with the new Repayment Assistance Plan (RAP) replacing most income-driven plans, and SAVE being phased out by July 1, 2028. Borrowers with older loans generally keep their existing choices. Confirm your options with the official Loan Simulator at StudentAid.gov.
The Bottom Line
There is no universally "best" plan — it depends on whether you are optimizing for total cost or for monthly cash flow, and on whether you expect forgiveness. Compare the numbers above, then confirm your eligibility with your servicer before switching.
Frequently Asked Questions
Which federal student loan repayment plan is best?
It depends on your goal. If you want to pay the least interest, the Standard 10-year plan usually wins. If you need a lower monthly payment, the Extended or an income-driven plan helps — but costs more interest unless you expect forgiveness. If you are pursuing PSLF, a low income-driven payment is usually best.
How much more does the Extended plan cost?
Stretching a loan from 10 to 25 years lowers the monthly payment but substantially increases total interest, because you are borrowing for 15 extra years. On a $40,000 loan at 6.5%, the Extended plan costs roughly $26,000 more in interest than the Standard plan (about $41,000 versus $14,500).
Is the Graduated plan cheaper than the Standard plan?
No. The Graduated plan starts with lower payments that rise every two years, but it still repays the loan over 10 years — so total interest is higher than the Standard plan. It is useful mainly if you expect your income to rise.
When does an income-driven plan beat the others?
When your income is low relative to your balance, or when you expect forgiveness (PSLF or long-term IDR forgiveness). If you plan to repay in full and your income is solid, an income-driven plan often costs more total interest than the Standard plan.
Can I switch repayment plans later?
Yes — you can change plans at any time by submitting a new request to your servicer, and there is no fee. Switching resets your remaining term for most plans, so it is worth running the numbers first. Note that plan availability changed on July 1, 2026 for newer loans.
Last updated: September 2026 · Reviewed by ScholarPay editorial team · General information only — not tax or financial advice.