What Is the Standard Repayment Plan for Federal Student Loans?

If you took out Federal Direct Loans or Federal Family Education Loans for school, you’ll have a six-month grace period after graduation before you’re required to start repaying them. If you don’t choose a repayment option, you’ll be put on the standard repayment plan by default.

The standard plan has a payback term of 10 years per loan, or between 10 to 30 years for consolidated loans. And you’ll typically have to make 120 fixed monthly payments consisting of interest and principal.

The great thing about this plan is that you can pay off your student loans in a relatively short time — which means you’ll pay less total interest than you would with a longer-term loan. Just keep in mind that your monthly payments will likely be larger than those of an income-based repayment plan, or a lower-rate loan secured through refinancing with a private lender.

The standard plan may be one way, but it’s not the only way, to repay.