Student Loan Extended Repayment Plan

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A variant of the extended repayment plan is extended graduated student loan repayment. While extended graduated repayment initially lowers payments based on the amount you owe, both extended plans reduce payments by lengthening your repayment term.

Extended Graduated Repayment At A Glance

  • Repayment length: 25 years.
  • Number of payments: 300.
  • Payments amounts: Increase every two years.
  • Other qualifications: Must owe at least $30,000 in federal student loans.
  • Is extended graduated repayment right for you?

    Probably not. In general, you will pay more interest under any repayment plan that reduces your payments or lengthens your repayment period. This repayment strategy is likely to result in you paying more interest than under any other choice because extended graduated student loan repayment accomplishes both of those goals.

    If you don’t anticipate making a lot of money right away after graduation, the 10-year graduated repayment plan or extended graduated repayment may make sense. Later in the repayment term, as your income increases over time, you should be able to afford the higher payments. However, if your expenses exceed your income, you could have financial problems.

    Consider income driven-repayment

    If your income is low and you have debt totaling $30,000 or more, income-driven repayment is a better choice if you qualify for extended repayment. Payments are based on your income, so they shouldn’t be more than you can afford to pay. Income-driven repayment also offers forgiveness after 20 or 25 years of payments. » MORE: How to submit an income-driven repayment application.


    Best if you

    Revised Pay As You Earn

  • Aren’t married.

  • Don’t have graduate loans.

  • Have high earning potential.

  • Pay As You Earn

  • Are married with two incomes.

  • Have graduate loans.

  • Have low earning potential.

  • Income-Based Repayment

  • Don’t qualify for PAYE.

  • Have FFELP student loans.

  • Income-Contingent Repayment

  • Have parent PLUS loans.

  • Want to reduce payments slightly.

  • Payments under the extended graduated repayment plan

    Your payments under the extended graduated repayment plan start out low and then rise every two years. Additionally, a fixed extended repayment option is available, which evenly distributes payment amounts over a 25-year period.

    Let’s say, for illustration, that you have a $35,000 student loan with a 4% interest rate. Your payments under each extended repayment plan scenario would look like this:

    Extended fixed

    Extended graduated

    FIrst payment



    Last payment



    Total repaid



    Plug your own loan information into the Education Department’s Loan Simulator to get an idea of how much you’d pay under each extended repayment option, as well as other student loan repayment plans.

    How to switch to extended graduated student loan repayment

    To switch to the extended or extended graduated repayment plan, contact your servicer. You can change repayment plans at any time. Any interest you owe will then be capitalized, or added to your balance, when you do so. This will further increase the amount you repay.

    Ryan Lane is a NerdWallet assistant assigning editor whose work has been highlighted by The Associated Press, U S. News & World Report and USA Today. Read more.

    Student Loan Extended Repayment Plan


    What is an extended repayment plan for student loans?

    You can pay off your loans over a long period of time with the Extended Repayment Plan. Payments are made for up to 25 years. The Extended Repayment Plan might be the best option for you if you need to make smaller monthly payments over a longer period of time than under plans like the Standard Repayment Plan.

    Did student loan repayment get extended?

    In a video message on Tuesday, President Joe Biden announced that the federal moratorium on student loan repayments has been extended until June 30, 2023.

    Will student loans be extended into 2022?

    The president has extended the student loan repayment pause into 2023, and Vice President Biden has extended it by a few more months. Biden stated that he wants to give time for debt cancellation lawsuits to proceed and for the Supreme Court to issue its ruling.

    Is Biden going to extend student loan payments again?

    As courts consider the future of its debt forgiveness program, the Biden administration said on Tuesday that it will once more extend a pause on payments for federal student loans from the pandemic era.