Repayment Options
My Situation
MOHELA offers a variety of options to manage the repayment of your loans including repayment plans and
ways to lower your payment or provide temporary relief. To explore options that are available based
on situations you may be facing visit
My Situation.
Repayment Plans
Several repayment plans are available to help manage your student loan account. Each repayment plan has distinct requirements which may result in paying less interest
over time or offer greater benefits such as loan forgiveness. If your circumstances don’t fit the repayment plans listed below, we encourage you to call us at 800.945.4701 (Toll Free)
to discuss other alternatives.
Plans based on the length of time in repayment:
Plans driven by income:
There is a lot to know about income-driven repayment plans
and it is important that borrowers renew their IBR plan on time each year to avoid potential consequences.
Estimate Your Payments
Repayment Plan Summary
Plans |
Loan Term |
Eligibility |
Payments |
Advantages |
Helpful Information |
STANDARD REPAYMENT |
10 Years (up to 30 years if consolidated) |
You will be placed on this plan if you do not select another plan |
Fixed monthly payments |
This is the fastest and least expensive plan based on interest paid |
This will be the plan you are placed on if you do not select another plan |
GRADUATED REPAYMENT |
10 Years (up to 30 years if consolidated) |
Upon request |
Payments start low, increase every 2 Years |
Works well if you expect your income to increase over time |
Increasing monthly payment amounts over time
The amount due each month must cover your interest |
EXTENDED REPAYMENT |
Up to 25 Years |
Must have more than $30,000 in FFELP or Direct Loans |
Fixed or graduated payments |
Lower monthly payments over a longer time frame |
You will generally pay more interest on this plan due to the longer repayment term |
INCOME-BASED REPAYMENT (IBR) |
25 Years (20 years for new borrowers as of 7/1/2014), any remaining balance may be forgiven |
Must demonstrate need based on your total federal student loan debt, adjusted gross income and family size
Your calculated payment must be less than what you would pay under the Standard (10-year) Repayment plan |
Monthly payment generally set at 15% of discretionary income (10% for new borrowers as of 7/1/2014) |
A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, your monthly payment will cap at the 10-year payment
Interest subsidy may apply
May also be used with the Public Service Loan Forgiveness Program |
Annual recertification of income and family size
More information about Income Based repayment plans |
INCOME-SENSITIVE REPAYMENT |
5 Years, then returns to Standard or Graduated |
Based on your gross monthly income |
Lowers payments for 12 months at a time |
Payments are affordable based on your gross monthly income |
Annual recertification of gross monthly income |
Parent PLUS Loans do not qualify for IDR Plans. Borrowers with Parent PLUS loans may consolidate and request ICR.
If your consolidation loan was disbursed on or prior to 7/1/2006 and the consolidation loan includes Parent PLUS loans, your consolidation loan may
not be eligible for IDR Plans.