The Extended Plan (Fixed) requires fixed monthly payments over a total loan term of up to 25 years.
- Borrowers must have at least $30,000 in outstanding Direct Loans and no outstanding Direct Loans on 10/7/1998
- Borrowers must have at least $30,000 in outstanding FFEL Loans and no outstanding FFEL Loans on 10/7/1998
- As an example, if you have $35,000 in outstanding FFEL Loans and $10,000 in Direct Loans, you can use the extended repayment plan for your FFEL Loans only.
|Required Payment Minimum|
In practice, since the borrower must have at least $30,000 in loans, the minimum monthly payment could not be less than $100.
|Required Payment Cap|
|Maximum Repayment Period||25 Years|
Monthly payments always exceed interest under the Extended Plan. However, if the borrower is unable to make payments, any unaccrued interest will be capitalized when:
Borrowers can switch to any other plan for which they are eligible
- Borrowers with high debt and expenses relative to income who need a predictable monthly payment.
- Due to the extended repayment timeframe, borrowers will generally end up paying significantly more in interest over the life of a loan under the Extended Plan than on the Standard Plan.
- Borrowers can at any point choose to make additional monthly payments to shorten the life of the loan.