How to Change Your Student Loan Repayment Plan

When it comes to student loan payments, you may feel trapped by the alternatives presented to you. However, there are more choices for repaying your student debt than you may believe. “How can I alter my student loan repayment program?” you may have wondered. “Can you change your student loan repayment plan?”

You’re in for a treat. Here is all you need to know to select the best student loan payback option for your situation:

How can I change my repayment plan for federal student loans?

First, Federal loan programs are more flexible when it comes to changing your payback schedule. You may take various approaches, ranging from adjusting the period you have to pay back to adjust the amount you pay each month. You may put your payments on hold or combine your debt.


So, selecting the best student loan repayment scheme for you is dependent on your goals. Do you want to pay off your loan faster? Do you want to pay less money each month? Perhaps you’d like to combine all of your debts into one?


The answers to these questions will result in various loans for pupils. It is critical to identify the source of your biggest suffering before moving on to the next. Take notice of the four possibilities that immediately apply to your situation:

  • I’d want to lower my monthly payment.
  • My loan alternatives are many and tough to comprehend.
  • I’m trying to have my student loans paid off.
  • I can afford my monthly payments and want to be debt-free sooner rather than later.


1. I’d want to lower my monthly payment.

When you’re having difficulties paying your bills, you have many options to consider:

  • Deferment
  • Forbearance
  • Repayment arrangements based on income

Deferment and forbearance provide the borrower a respite from student loan repayment for a certain period. Both methods allow you to suspend your student loan repayment. However, loans in forbearance are always liable to interest throughout the time, whereas only certain types of deferred loans are.

In the event of income-driven repayment programs, your payments will not be stopped; instead, the interest rate will be reduced. They are as follows:

Income-Based Repayment plans (IBR)

  • IBR programs are available for both PLUS loans and federal Stafford loans. Loans made direct consolidation, FFEL, or direct loans to parents that do not include the FFEL PLUS loan.
  • The payments are equal to 10% or 15% of your discretionary income. You may be eligible for forgiveness after 20 or 25 years of continuous payments.

Revised Pay As You Earn plan (REPAYE )

  • REPAYE plans are available for direct consolidation and loans for direct loans.
  • Payouts are equal to 10% of your discretionary income. You are eligible for forgiveness if you have made twenty or more years of continuous payments.

Pay As You Earn plan (PAYE)

  • PAYE plans are intended for Direct loans and Direct consolidation loans that are due in October or later. 1st, 2007 and received after October 1st, 2007. 1st of January, 2011.
  • The payment amount is 10% of your discretionary income. You may be eligible for a 20-year term of continuous payment forgiveness.

Income-Contingent Repayment Plan (ICR)

  • For direct loans and direct consolidation loans, ICR options are available.
  • The payments will be calculated based on less than 20% of your discretionary earnings or the amount you’d have to pay on an annual fixed-term repayment plan, adjusted for your income. After making 25 consecutive payments over 25 years, the debt is redeemable for forgiveness.

Income-sensitive Repayment plan

  • Income-sensitive repayment options are available for Federal Stafford credit, FFEL PLUS loans, and FFEL consolidation loans.
  • Your yearly income will serve as the foundation for calculating how much you pay. Depending on the lender, the formula you employ will be different. The contract is for ten years. The longest period you can repay.

You should be aware that you must apply for these repayment plans each year, and the amount forgiven may be tax-free. The programs above (except the income-sensitive project) will keep you in debt for a more extended period unless you are qualified for loan forgiveness.

2. My loans are varied and perplexing.

If you find it challenging to keep track of your loan balances owing to the jumble of due dates, interest rates, and credits, you have the option of combining the loans into one instant consolidation loan. This may make your loans eligible for the previously stated income-driven repayment choices.

The goal of consolidation is to combine federal loans and multiple servicers and rates into one. Direct debt consolidation is free.

Keep in mind that consolidating federal debts through direct loan consolidation resets the clock on any progress toward loan forgiveness.

According to Federal Student Aid, here are a few more benefits and drawbacks of direct loan consolidation:

Pros of Direct Loan Consolidation

  • Reduce the amount of money you pay.
  • Reduce your monthly costs by extending the repayment timeline.
  • Access to the new income-driven repayment plan, which will eliminate any variable rates you may have.

Cons of Direct Loan Consolidation

  • It is possible to be in debt for a longer period and pay more for it if you extend the repayment plan’s duration.
  • Specific options, such as interest rate discounts and other perks, may be lost to you.
  • You will lose credit for all payments paid up to forgiveness.

3. I’m hoping to be able to repay my loans.

If paying off your debts is your primary objective, you’ll be relieved to know that it’s possible using the income-driven repayment alternatives we described earlier.

To begin, we must present a list of Federal loan forgiveness options:

  • Discharge from a school that is no longer in operation: When you are present, the school will close within 120 days after your departure.
  • Repayment for people who have made 120 qualifying payments while employed by the specified government or non-profit organizations under the Public Service Loan Repayment Program.
  • Student debt repayment: Teachers who have taught for five years at schools that qualify can have up to $17,500 in loans forgiven.
  • Cancellation and Discharge of Perkins Loans Perkins loan holders of all sorts, including teachers, nurses, firemen, and instructors, can have their debts canceled.
  • Permanent and total disability discharge: Student loan payments for federal loan holders who have been disabled for an extended period.
  • Discharge due to death: The deceased’s federal loans might be discharged.
  • Bankruptcy discharge: Borrowers who can demonstrate an undue hardship may be entitled to have their student debts discharged.
  • False declaration of student eligibility or unauthorized payment discharge: Certain federal student loans may be discharged if you are not eligible for the loan, if the loan was granted without your consent, or if you will never be able to meet the requirements to work in the field that you want to pursue.
  • Non-payment of refunds: Your debt may be discharged if you withdraw within the required deadline, but your school does not send the government a check.
  • Discharge of debtor defense Student loan defense discharge: Students who attended institutions that deceived them or who broke the law may be eligible for loan forgiveness.

The bulk of these programs are entirely arbitrary. However, there are several that you can deliberately seek out and learn how to use.

Repayment of Public Service Loans

  • This is true for both direct loans and direct consolidation loans.
  • Full-time workers of government agencies, 501(c)(3) non-profits, and other qualified non-profits are eligible for forgiveness after making 120 qualifying installments under an income-driven repayment arrangement.

Loan forgiveness for students

  • It is not available for PLUS loans or Federal Perkins loans. (However, instructors with Perkins loans are eligible for teacher cancellation.)
  • Teachers who work full-time at a qualifying school for five years in a row may be eligible for up to $17,500 in debt forgiveness.

Income-based forgiveness Plans for repayment

  • Anyone on the Income-Driven Repayment plan can have their payments forgiven after a specified length of time, generally between 20 and 25 years.

All of them are susceptible to change when student loan rules change. Be advised that, depending on the laws in effect at the time of debt forgiveness, the forgiven debt may be tax-deductible.

4. I can pay my payments and want to get out of debt as quickly as possible.

If you’re asking, “What repayment choices do I have for my student loans to pay off my debt faster?” Consider the following three income-independent repayment options:

  • Standard repayment schedule

Fixed payments with a 10-year or more extended amortization schedule in the case of Direct Consolidation loans.

  • Make a repayment plan with progressive interest rates.

Payments begin small and steadily rise in line with a predetermined plan. With Direct Consolidation loans, the payback period is ten years, but it can be extended to 10-30 years.

  • Plan for extended repayment

It is possible to make either fixed or progressive payments. Repayment options are available for up to 25 years.

If you want to switch to a different payment method, you can ask your service provider to do it for you. It’s completely free and accessible at any time.