What is the Graduated Student Loan Repayment Plan?

When it comes to managing student loan debt, understanding the various repayment plans available is crucial. One such option is the Graduate Student Loan Repayment plan. In this article, we will explore what this repayment plan entails, who is eligible, and how to apply for it. Whether you are a current graduate student or about to enter college, this guide will provide you with valuable insights to make informed decisions about your student loans.

Understanding the Graduate Student Loan Repayment Plan

The Graduate Student Loan Repayment plan facilitates income-based payments that gradually increase over time. If you anticipate a steady rise in your income throughout your career, this repayment plan might be the ideal choice for you. It is designed to assist students who have borrowed from the William D. Ford Federal Direct Loan Program or Federal Family Education Loan (FFEL) Programs. This encompasses various loan options, including:

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans
  • Direct consolidation loans
  • Subsidized Federal Stafford loans
  • Unsubsidized Federal Stafford loans
  • FFEL PLUS loans
  • FFEL consolidation loans

The repayment plan is designed to help students as their career progresses and they begin to make more money. 

Monthly Payments

If you have a graduate repayment plan, your payments start out low and increase every two years based on your income. Payments are made for up to 10 years unless you have a consolidation loan. 

Payments will never be less than the amount of interest that accrues between payments and will never be more than three times greater than any other payment. 

Are they available for consolidation loans?

Yes, graduate repayment plans are available for both the Direct Consolidation Loan and the FEEL Consolidation Loan, though it works slightly differently with these. 

The main difference with the consolidation loan is the payment period, which could be 10-30 years depending on the amount of student loan debt you have. 

How do I apply for a graduate loan repayment plan?

To apply for this repayment plan, you need to contact your student loan servicer (the company that handles the payments for your loan). They can determine if you qualify for the graduate repayment plan or other additional plans available through federal programs. 


With the Graduate Student Loan Repayment plan, borrowers have an effective tool to manage their student loan debt while navigating the early stages of their careers. This income-based repayment option provides flexibility and ensures that repayments remain affordable as income progressively increases.

By understanding the eligibility requirements and application process, you can take the necessary steps to ensure a smooth and successful loan repayment journey. Remember to explore all available options and make an informed decision that aligns with your financial goals and aspirations.

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