§ 685.208 Fixed payment repayment plans. ( a ) *General.* Under a fixed payment repayment plan, the borrower's required monthly payment amount is determined based on the amount of the borrower's Direct Loans, the interest rates on the loans, and the repayment plan's maximum repayment period.
( b ) *Standard repayment plan for all Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct PLUS Loan borrowers, regardless of when they entered repayment, and for Direct Consolidation Loan borrowers who entered repayment before July 1, 2006.* ( 1 ) Under this repayment plan, a borrower must repay a loan in full within ten years from the date the loan entered repayment by making fixed monthly payments.
( 2 ) A borrower's payments under this repayment plan are at least $50 per month, except that a borrower's final payment may be less than $50.
( 3 ) The number of payments or the fixed monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).
( c ) *Standard repayment plan for Direct Consolidation Loan borrowers entering repayment on or after July 1, 2006.* ( 1 ) Under this repayment plan, a borrower must repay a loan in full by making fixed monthly payments over a repayment period that varies with the total amount of the borrower's student loans, as described in paragraph (j) of this section.
( 2 ) A borrower's payments under this repayment plan are at least $50 per month, except that a borrower's final payment may be less than $50.
( d ) *Extended repayment plan for all Direct Loan borrowers who entered repayment before July 1, 2006.* ( 1 ) Under this repayment plan, a borrower must repay a loan in full by making fixed monthly payments within an extended period of time that varies with the total amount of the borrower's loans, as described in paragraph (i) of this section.
( 2 ) A borrower makes fixed monthly payments of at least $50, except that a borrower's final payment may be less than $50.
( 3 ) The number of payments or the fixed monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).
( e ) *Extended repayment plan for all Direct Loan borrowers entering repayment on or after July 1, 2006.* ( 1 ) Under this repayment plan, a new borrower with more than $30,000 in outstanding Direct Loans accumulated on or after October 7, 1998 must repay either a fixed annual or graduated repayment amount over a period not to exceed 25 years from the date the loan entered repayment. For this repayment plan, a new borrower is defined as an individual who has no outstanding principal or interest balance on a Direct Loan as of October 7, 1998, or on the date the borrower obtains a Direct Loan on or after October 7, 1998.
( 2 ) A borrower's payments under this plan are at least $50 per month, and will be more if necessary to repay the loan within the required time period.
( 3 ) The number of payments or the monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).
( f ) *Graduated repayment plan for all Direct Loan borrowers who entered repayment before July 1, 2006.* ( 1 ) Under this repayment plan, a borrower must repay a loan in full by making payments at two or more levels within a period of time that varies with the total amount of the borrower's loans, as described in paragraph (i) of this section.
( 2 ) The number of payments or the monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).
( 3 ) No scheduled payment under this repayment plan may be less than the amount of interest accrued on the loan between monthly payments, less than 50 percent of the payment amount that would be required under the standard repayment plan described in paragraph (b) of this section, or more than 150 percent of the payment amount that would be required under the standard repayment plan described in paragraph (b) of this section.
( g ) *Graduated repayment plan for Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct PLUS Loan borrowers entering repayment on or after July 1, 2006.* ( 1 ) Under this repayment plan, a borrower must repay a loan in full by making payments at two or more levels over a period of time not to exceed ten years from the date the loan entered repayment.
( 2 ) The number of payments or the monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).
( 3 ) A borrower's payments under this repayment plan may be less than $50 per month. No single payment under this plan will be more than three times greater than any other payment.
( h ) *Graduated repayment plan for Direct Consolidation Loan borrowers entering repayment on or after July 1, 2006.* ( 1 ) Under this repayment plan, a borrower must repay a loan in full by making monthly payments that gradually increase in stages over the course of a repayment period that varies with the total amount of the borrower's student loans, as described in paragraph (j) of this section.
( 2 ) A borrower's payments under this repayment plan may be less than $50 per month. No single payment under this plan will be more than three times greater than any other payment.
( i ) *Repayment period for the extended and graduated plans described in paragraphs (d) and (f) of this section, respectively.* Under these repayment plans, if the total amount of the borrower's Direct Loans is— ( 1 ) Less than $10,000, the borrower must repay the loans within 12 years of entering repayment;
( 2 ) Greater than or equal to $10,000 but less than $20,000, the borrower must repay the loans within 15 years of entering repayment;
( 3 ) Greater than or equal to $20,000 but less than $40,000, the borrower must repay the loans within 20 years of entering repayment;
( 4 ) Greater than or equal to $40,000 but less than $60,000, the borrower must repay the loans within 25 years of entering repayment; and
( 5 ) Greater than or equal to $60,000, the borrower must repay the loans within 30 years of entering repayment.
( j ) *Repayment period for the standard and graduated repayment plans described in paragraphs (c) and (h) of this section, respectively.* Under these repayment plans, if the total amount of the Direct Consolidation Loan and the borrower's other student loans, as defined in § 685.220(i), is— ( 1 ) Less than $7,500, the borrower must repay the Consolidation Loan within 10 years of entering repayment;
( 2 ) Equal to or greater than $7,500 but less than $10,000, the borrower must repay the Consolidation Loan within 12 years of entering repayment;
( 3 ) Equal to or greater than $10,000 but less than $20,000, the borrower must repay the Consolidation Loan within 15 years of entering repayment;
( 4 ) Equal to or greater than $20,000 but less than $40,000, the borrower must repay the Consolidation Loan within 20 years of entering repayment;
( 5 ) Equal to or greater than $40,000 but less than $60,000, the borrower must repay the Consolidation Loan within 25 years of entering repayment; and
( 6 ) Equal to or greater than $60,000, the borrower must repay the Consolidation Loan within 30 years of entering repayment.
( k ) The repayment period for any of the repayment plans described in this section does not include periods of authorized deferment or forbearance.
(Authority: 20 U.S.C. 1087a *et seq.*)
[71 FR 45712, Aug. 9, 2006, as amended at 71 FR 64400, Nov. 1, 2006; 73 FR 63255, Oct. 23, 2008; 77 FR 66135, Nov. 1, 2012; 78 FR 65833, Nov. 1, 2013; 80 FR 67238, Oct. 30, 2015; 87 FR 66058, Nov. 1, 2022; 88 FR 43900, July 10, 2023]