Student Loan Repayment Plans Compared
The average student loan borrower graduates with approximately $37,000 in debt. Choosing the right repayment plan can save thousands in interest and years of payments. The Standard 10-year plan has the lowest total cost, but income-driven plans offer lower monthly payments if needed. The SAVE plan (replacing REPAYE) is the newest income-driven option for federal loans.
| Plan | Monthly Payment | Total Paid | Total Interest | Timeline |
|---|---|---|---|---|
| Standard (10 yr) | $380 | $45,553 | $10,553 | 120 months |
| Extended (25 yr) | $215 | $64,389 | $29,389 | 300 months |
| Accelerated (5 yr) | $670 | $40,184 | $5,184 | 60 months |
| Standard + $100 extra | $480 | $42,571 | $7,571 | 89 months |
Impact of Extra Payments
Extra payments on student loans go directly toward reducing the principal (by law, you can direct extra payments to principal). Even $100 extra per month on a $35,000 loan at 5.5% saves $2,982 in interest and pays off the loan 31 months early. The key is consistency and ensuring extra payments are applied to principal, not future payments.
- 1Standard payment: $380/month
- 2With extra: $380 + $150 = $530/month
- 3Standard payoff: 120 months (May 2036)
- 4Accelerated payoff: 80 months (December 2032)
- 5Standard total interest: $10,553
- 6Accelerated total interest: $6,774
- 7Interest saved: $3,779
- 8Time saved: 40 months (3 years 4 months)
Federal Student Loan Interest Rates (2026)
| Loan Type | Interest Rate | Borrower |
|---|---|---|
| Direct Subsidized | 5.50% | Undergraduate |
| Direct Unsubsidized | 5.50% | Undergraduate |
| Direct Unsubsidized | 7.05% | Graduate |
| Direct PLUS | 8.05% | Graduate/Parent |
Extended and income-driven plans can cost $15,000-$30,000 more in interest compared to the Standard plan. While lower monthly payments help with cash flow, they dramatically increase the total cost. If you can afford more, pay more. Every extra dollar saves interest.
Student Loan Payoff Strategies
Strategies to Pay Off Student Loans Faster
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