Extended Plan (Fixed)

By davidgaoUpdated April 17, 2018


Overview

The Extended Plan (Fixed) requires fixed monthly payments over a total loan term of up to 25 years.

Eligibility

  • Borrowers must have at least $30,000 in outstanding Direct Loans and no outstanding Direct Loans on 10/7/1998
  • Borrowers must have at least $30,000 in outstanding FFEL Loans and no outstanding FFEL Loans on 10/7/1998
  • As an example, if you have $35,000 in outstanding FFEL Loans and $10,000 in Direct Loans, you can use the extended repayment plan for your FFEL Loans only.

Terms

Monthly Payment
Fixed
Required Payment Minimum
None

In practice, since the borrower must have at least $30,000 in loans, the minimum monthly payment could not be less than $100.

Required Payment Cap
None
Maximum Repayment Period25 Years
Loan Forgiveness
None
Interest Benefit
None
Interest Capitalization
Monthly payments always exceed interest under the Extended Plan. However, if the borrower is unable to make payments, any unaccrued interest will be capitalized when:
  • The loan enters repayment (e.g. grace period ends, deferment ends)
  • The loan defaults
  • The borrower changes the repayment plan
  • The borrower consolidates the loan
Switching Plans
Borrowers can switch to any other plan for which they are eligible

Best For

  • Borrowers with high debt and expenses relative to income who need a predictable monthly payment.

Additional Notes

  • Due to the extended repayment timeframe, borrowers will generally end up paying significantly more in interest over the life of a loan under the Extended Plan than on the Standard Plan.
  • Borrowers can at any point choose to make additional monthly payments to shorten the life of the loan.

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