Graduated Repayment

If you're confident that your income will increase over time but want to start tackling your debt with lower payments, the federal Graduated Loan Repayment plan might be for you. Created for borrowers that want to start out with low monthly payments that increase every two years over the 10-year life of the loan, this payment plan best serves those on a career track, who have reliable and increasing incomes.

If you have more than $30,000 in Direct Loans, you may even be eligible to extend your repayment for up to 25 years and choose to graduate the payments. Since you can change your federal repayment plan once annually, you may request this program from your servicer. Monthly payments will never be less than the amount of interest that accrues between payments and although the monthly payment will gradually increase, no single payment will ever be more than three times the value of any other payment. But keep in mind: the longer it takes to repay, the more it costs. So remember to set-up automatic debit payments to reduce your interest rate by .25%.


  • Provides the opportunity for monthly payments to increase as income rises
  • Easy to request plan via phone, email or online account access
  • Allows flexibility to change payment amounts without changing the repayment period
  • No prepayment penalties


  • More interest paid over the life of the loan
  • Monthly payments steadily increase every 2 years