Everyone’s financial goals are different, and there are other factors which might affect which repayment plans you are eligible for.
Every plan displayed in the Savi tool - with the exception of Standard - is an income-driven plan. Any Income-Driven plan (IDR) would be eligible for PSLF. However, they are calculated differently. If your goal is the lowest monthly payment, select the lowest available plan to you. If your goal is to pay off your loans as quickly as possible (this might mean a higher payment), select the plan that is most aligned with that goal.
Standard Repayment Plan
Basic information about this plan:
- This is the default plan offered by the US Department of Education.
- If you do not qualify for loan forgiveness, you may pay less than plan than you would under an income driven repayment plan.
Additional information about this plan:
- Borrowers enrolled in this plan (who have not consolidated their student loans) are technically eligible for PSLF, but will receive little to no forgiveness if they never switch into an income-driven repayment plan.
- Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).
For more information about Standard repayment, click here.
Think carefully about your financial goals for your student loans, and which plan best aligns with those goals. Also note, for Income Driven Repayment plans, you need to recertify your income every twelve months. The plan you select will only reflect the payment amount until you recertify your income again the following year. This means that if your income increases, your payments will also increase. Same if your income decreases significantly.