What is an extended repayment plan?
If you have more than $30,000 in outstanding federal Stafford and/or PLUS loans with one or more lenders, and all of your loans were established after Oct. 7, 1998, you may be eligible for an extended repayment plan. With an extended repayment plan, you may: • Lower your monthly payment by up to 40% • Maintain borrower incentives such as interest rate reductions and principal rebates • Maintain full deferment eligibility • Pay no fees and incur no credit check Anytime you extend your repayment term, you will increase the overall interest amount you pay over the life of the loan. You may apply for an extended repayment plan during your grace periods, once your loans have entered repayment, or during periods of deferment or forbearance. Just contact your lender or loan servicer and request the extended repayment plan. Make sure to contact all of your lenders if you have loans with more than one.
