If you have a federal loan program balance of more than $30,000, you may be eligible to extend your loan payments for a period of up to 25 years. You’ll be able to pay a lower amount each month over a longer period of time. Monthly payments will be based on fixed annual or graduated repayment amounts.
Remember: By lengthening your repayment term, you can lower your monthly payment, but the overall loan cost will be higher.
Eligible federal student loan programs
The Federal Family Education Loan Programs (FFELP) and the Direct Loan Programs eligible for extended repayment include:
- Federal Direct or Stafford (subsidized and unsubsidized),
- PLUS (Parent and Graduate)
- Federal Consolidation loans.
To qualify for extended repayment, you must meet the following conditions:
- Have a total outstanding loan program balance that exceeds $30,000.
- Have one or more qualified loan(s) first disbursed on or after Oct. 7, 1998, with no other outstanding federal loans disbursed before that date.
- Have obtained a Consolidation loan on or after Oct. 7, 1998 with no other outstanding federal loans when the consolidation loan was made.