Standard Repayment Plan

E572502

The Standard Repayment Plan is a federal student loan repayment option that requires fixed monthly payments over a set term, typically resulting in less interest paid over time compared with extended or income-driven plans.

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Statements (50)

Predicate Object
instanceOf federal student loan repayment plan
student loan repayment option
administeredBy U.S. Department of Education NERFINISHED
appliesTo Direct Loans
Federal Family Education Loan (FFEL) Program loans
federal student loans not in default
associatedConcept amortizing loan
fixed installment repayment
benefit faster payoff compared with extended or income-driven plans for the same debt
lower total interest cost compared with extended or income-driven plans for the same debt
borrowerAction can be selected during or after the grace period
communicationChannel explained in federal loan disclosure and servicer communications
country United States of America
surface form: United States
currency U.S. dollars
defaultStatus often the default repayment plan if a borrower does not choose another plan
drawback higher monthly payment than under most income-driven repayment plans
less flexibility if borrower income decreases
eligibility available for Direct Consolidation Loans
available for Direct PLUS Loans
available for Direct Subsidized Loans
available for Direct Unsubsidized Loans
available for FFEL Consolidation Loans
available for FFEL PLUS Loans
available for FFEL Subsidized Stafford Loans
available for FFEL Unsubsidized Stafford Loans
available to most federal student loan borrowers
forgivenessEligibility does not itself provide loan forgiveness
goal to fully amortize the loan within a fixed term
gracePeriodRelation payments typically begin after the end of the loan’s grace period
incomeRequirement does not require income documentation
interestOutcome usually results in less interest paid over the life of the loan than extended plans
usually results in less interest paid over the life of the loan than income-driven repayment plans
loanTypeLimitation does not apply to private student loans
paymentAmountCharacteristic highest monthly payment among common federal repayment plans for the same debt and term
paymentCalculationBasis interest rate
loan balance
repayment term
paymentChangePolicy payments generally do not change over time
paymentFrequency monthly
paymentStructure fixed monthly payments
prepaymentPolicy borrowers may prepay without federal prepayment penalties
publicServiceLoanForgivenessCompatibility qualifying payments can count toward Public Service Loan Forgiveness if other PSLF criteria are met
recertificationRequirement does not require annual income recertification
regulatoryFramework governed by federal student aid regulations
risk higher risk of delinquency for borrowers with limited income compared with income-driven plans
switchingPolicy borrowers can usually switch from the Standard Repayment Plan to another eligible federal repayment plan
targetBorrowerProfile borrowers who can afford higher fixed payments
typicalRepaymentTerm 10 years
typicalRepaymentTermRange up to 10 years for most borrowers
up to 30 years for some consolidation loans

Referenced by (4)

Full triples — surface form annotated when it differs from this entity's canonical label.

Extended Repayment Plan comparedTo Standard Repayment Plan
Graduated Repayment Plan comparedWith Standard Repayment Plan
Extended Repayment Plan hasLowerMonthlyPaymentThan Standard Repayment Plan
Direct Consolidation Loan repaymentPlanEligibility Standard Repayment Plan