Repayment Options

Review Repayment Options

MOHELA offers a variety of options to manage the repayment of your loans including repayment plans and ways to lower your payment or provide temporary relief. To explore options that are available based on situations you may be facing, visit Repayment Options.

Repayment Plans

Several repayment plans are available to help manage your student loan account. Each repayment plan has distinct requirements which may result in paying less interest over time or offer greater benefits such as loan forgiveness. If your circumstances don’t fit the repayment plans listed below, we encourage you to call us at 1-888-866-4352 (Toll Free) to discuss other alternatives.

Plans based on the length of time in repayment

Loan Programs

Direct Loans and Federal Family Education Loan Program (FFELP) Loans

Loan Term

10 years (Option to extend up to 30 years)

Eligibility

You will be placed on this plan if you do not select another plan

Payments

Fixed monthly payments

Advantages

This is the fastest and least expensive plan based on interest paid

Loan Programs

Direct Loans and FFELP

Loan Term

25 years

Eligibility

Must have more than $30,000 in FFELP or Direct Loans

Payments

Fixed or graduated payments

Advantages

Lower monthly payments over a longer period of time

Loan Programs

Direct Loans and FFELP

Loan Term

10 Years (Option to extend up to 30 years)

Eligibility

Upon Request

Payments

Payments start low and increase every 2 years

Advantages

Works well if you expect your income to increase over time

Plans driven by income

Loan Programs

Direct Loans Only 1

Loan Term

20 years for undergraduate loans and 25 years for graduate or professional loans

Eligibility

Based on your adjusted gross income, family size, and total federal student loan debt

Payments

Monthly payment generally set at 10% of discretionary income

Advantages

A reduced monthly payment amount

Interest subsidy may apply

May also be used with the Public Service Loan Forgiveness Program

Loan Programs

Direct Loans Only 1

Loan Term

20 years

Eligibility

As of July 1, 2024, borrowers that leave the PAYE Plan will not be allowed to re-enroll in the PAYE Plan.

Must demonstrate need based on your total federal student loan debt, adjusted gross income, and family size.

Your calculated payment must be less than what you would pay under the Standard (10-year) Repayment plan.

Payments

Monthly payment generally set at 10% of discretionary income

Advantages

A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, your monthly payment will cap at the 10-year payment.

May also be used with the Public Service Loan Forgiveness Program

Loan Programs

Direct Loans & FFELP 1

Loan Term

25 Years (20 years for new borrowers as of 7/1/2014)

Eligibility

Must demostrate need based on your total federal student loan debt, adjusted gross income, and family size

Your calculated payment must be less than what you would pay under the Standard (10-year) Repayment plan

Payments

Monthly payment generally set at 15% or discretionary income (10% for new borrowers as of 7/1/2014)

Advantages

A reduced monthly payment amount. If you no longer qualify for a reduced monthly payment, your monthly payment will cap at the 10-year payment.

Interest subsidy may apply

May also be used with the Public Service Loan Forgiveness Program

Loan Programs

Direct Loans Only 1

Loan Term

25 Years

Eligibility

As of July 1, 2024, borrowers that leave the ICR Plan will not be allowed to re-enroll, unless they have a Direct Consolidation Loan disbursed on or after July 1, 2006, which repaid a Direct Parent PLUS or a Federal Family Education Loan (FFEL) Program Parent PLUS loan.Based on your adjusted gross income, family size, and total federal student loan debt.

Payments

Monthly payments set at the lesser of 20% of discretionary income or a percentage (based on income) of payment on a Standard Plan with a 12-year repayment period

Advantages

Interest subsidy may apply

May also be used with the Public Service Loan Forgiveness Program

Loan Programs

FFELP Only

Loan Term

5 years, then returns to Standard or Graduated

Eligibility

Based on your gross monthly income

Payments

Lowers payments for 12 months at a time

Advantages

Payments are based on your gross monthly income

1 Additional eligibility requirements may apply.

Parent PLUS Loans do not qualify for IDR Plans. Borrowers with Parent PLUS loans may consolidate and request ICR.

If your consolidation loan was disbursed on or prior to 7/1/2006 and the consolidation loan includes Parent PLUS loans, your consolidation loan may not be eligible for IDR Plans.

FFELP loans owned by the Department of Education are eligible for the Income-Sensitive Repayment plan.

Estimate Your Payments and Apply for a Plan

Review the repayment plans you’re eligible for with Loan Simulator   this link will open in a new window. There you can see estimated monthly payments for each plan, total loan costs, and apply!

Change Repayment Plans

For income-driven repayment plans:

Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year’s income tax information from the IRS. Sign in using your Federal Student Aid ID, and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online. You can create an FSA ID before completing the application.

If you are past due or missed your annual recertification, please contact us for assistance.

For changes to other repayment plans, contact us. Our Customer Service Representatives can assist with your request to change plans.