What Is An Extended Repayment Plan?

Federal student loans give borrowers several different repayment options to make it easier for them to pay back their loans. One such option is the extended repayment plan. This plan allows borrowers to make lower payments every month by extending the tenure of the loan from the standard plan of 10 years to up to 25 years. The exact extension will depend on various factors.

Text that says "extended repayment plan", a white arrow pointing right, and text underneath that says "10 years, 15 years, 25 years."

Pros of an extended repayment plan:

The big benefit is that it reduces your financial burden by lowering the monthly payments and making them much more manageable for you. This is great news as it minimizes the potential for late payments or worse, student loan default.

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Cons of an extended repayment plan:

While extending the loan from 10 years to a possible 25 years may offer you a possible lifeline, the downside is that the interest on the loan keeps accruing throughout the extended period. This increases the amount of the loan significantly. By the time you finish paying off the loan, you will have ended up paying much more than what you would have owed with a standard 10-year repayment plan.

Should you opt for this plan?

So is an extended repayment plan a good or bad option? It depends on your unique situation. It may help you get out of a financial crisis but it is important to understand exactly how it works before you sign up for it.

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Lender Rates (APR) Eligibility
Earnest company logo.
Variable APR: 1.89% - 7.99%*
Fixed APR: 3.24% - 7.99%*
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Lendkey company logo.
Variable APR: 2.05% - 5.25%*
Fixed APR: 2.69% - 7.93%*
Undergraduate, Graduate, Parent PLUS
Credible company logo.
Variable APR: 1.86% - 8.38%*
Fixed APR: 2.35% - 8.73%*
Undergraduate and Graduate
Laurel road company logo.
Variable APR: 2.50% - 6.30%*
Fixed APR: 3.99% - 6.40%*
Undergraduate and Graduate
Fixed APR: 3.94% - 9.08%*
Undergraduate, Graduate, Parent PLUS
VISIT ISL Education Lending
Variable APR: 3.44% - 7.99%*
Fixed APR: 3.99% - 7.99%*
Undergraduate and Graduate
VISIT College Ave
Variable APR: 1.86% - 7.98%*
Fixed APR: 3.99% - 6.99%*
Undergraduate and Graduate, Parent PLUS

*APR includes a 0.25% interest rate reduction for enrollment in automatic payments.

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