Extended Repayment Plan
This plan is usually well suited for borrowers with higher incomes that do not qualify for the other repayment plans due to a lack of financial hardship. Under this plan a borrower is able reduce their monthly payment to the lowest figure possible.
In addition, this is a great plan for parents who have Federal Family Education PLUS loans or Federal Family Education Consolidation Loans who are not eligible for IBR, ICR, or Pay As You Earn.
Under this plan, your monthly payments are:
- A fixed or graduated amount,
- Made for up to 25 years, and
- Generally lower than payments made under the Standard and Graduated Repayment Plans.
- Allows the borrower to repay the loans over an extended period of time
- If you need to make lower monthly payments over a longer period of time than under plans such as the Standard Repayment Plan, then the Extended Repayment Plan may be right for you.