The standard maximum repayment time for federal student loans is 10 years, but in reality most borrowers take longer.
The vast majority of former students entering repayment on their federal student loans in 2012 picked 10-year plans. The numbers were higher for former students from two- and four-year programs, up to 90 percent of which picked the standard 10-year plan.
Recent history indicates that many of those borrowers will be repaying their federal student loans for far longer than 10 years. With a lackluster economy, tepid wage growth and vast numbers of Americans still looking for full-time work, some federal policymakers fear current borrowers will need more time to repay their loans than previous generations.
Just last month the Obama administration predicted “the increased use of student loan forgiveness programs will cost taxpayers $22 billion next year”. Student loan forgiveness programs allow reduced monthly payments that typically extend the repayment period beyond ten years.
Here’s a listing of federal student loan repayment time frames. Click the links to find more details.
|REPAYMENT PLAN||TIME FRAME|
|Standard Repayment Plan||Up to 10 years|
|Graduated Repayment Plan||Up to 10 years|
|Extended Repayment Plan||Up to 25 years|
|Income-Based Repayment Plan (IBR)||Up to 25 years|
|Pay As You Earn Repayment Plan||Up to 20 years|
|Income-Contingent Repayment Plan||Up to 25 years|
|Income-Sensitive Repayment Plan||Up to 10 years|