Repay your Direct Subsidized or Unsubsidized Loan / Federal Stafford Loan (subsidized or unsubsidized)


  • After you stop attending school at least half time, a 6-month grace period begins. You receive only one grace period per loan.
  • Repayment begins after the grace period ends, with your first payment usually due 45-60 days later.
  • The maximum repayment period is 10 years.
  • Payments are expected each month.
  • The minimum monthly payment is $50, but this amount may be higher depending on your loan balance.
  • You may prepay your loan at any time without penalty. Prepayment may substantially reduce the amount of interest you pay.

Payment plans


  • Standard:
    • Minimum monthly payment is $50, but may be higher depending on balance
    • Maximum repayment period of 10 years
  • Graduated:
    • Begins with lower payments that increase over time
    • Maximum repayment period of 10 years
    • More interest accrues over the life of the loan because the principal balance decreases at a slower rate.
  • Income-contingent for Direct Subsidized or Unsubsidized Loans:
    • Adjusted payments amount based on gross income and family size
    • Payments cannot be lower than your monthly interest amount
    • Eligibility and payment amount adjusted annually
    • More interest accrues over the life of the loan because the principal balance decreases at a slower rate.
    • If you do not repay your loan after 25 years, the unpaid portion is forgiven. You may have to pay income tax on any amount forgiven.
  • Income-sensitive for Federal Stafford Loans (subsidized or unsubsidized):
    • Adjusted payment amount based on gross income
    • Payment is the greater of your monthly interest amount or 4 percent of your gross monthly income
    • Eligibility and payment amount verified annually
    • More interest accrues over the life of the loan because the principal balance decreases at a slower rate.
  • Income-based:
    • Available for payments made on or after July 1, 2009
    • Adjusted payment amount based on income and family size
    • Payment is not more than 15 percent of the amount by which your adjusted gross income exceeds 150 percent of the poverty line for your family size.
    • If your monthly payment amount is not enough to pay accrued interest on a Direct Subsidized Loan / subsidized Federal Stafford Loan, the Department of Education will pay the remaining interest for a period of three years.
    • Payments re-evaluated annually
    • More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.
    • Any outstanding loan balance after 25 years is forgiven
      • Very few borrowers will have a remaining balance after 25 years.
      • The amount forgiven may be taxable.
    • Estimate payment under the income based repayment plan.
  • Extended:
    • Available to new borrowers on or after October 7, 1998, who have a minimum balance of $30,000 in loans
    • Payment amounts can be either fixed annually or graduated.
    • Maximum repayment term is 25 years
    • More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.

If you ever have difficulty repaying your loan, contact your loan holder immediately, as you have options, including a change to your repayment plan, deferment, and forbearance!

Read more about these loans.