Can You Change Student Loan Repayment Plans?
Aug 19, 2023 By Triston Martin

Are you among the millions of Americans burdened by student loan debt? If so, you may have wondered if there’s something you can do to lighten the burden — such as switching repayment plans. Understanding and navigating student loan repayment requirements can be complicated and daunting, but it doesn’t have to be.

In this blog post, we’ll provide an overview of how changing your student loan repayment plan works to help you build a financial path that fits your budget and long-term financial goals.

Understanding Federal Student Loan Repayment Plans

One of the most important things to understand when changing your student loan repayment plan is how federal student loans work. All federal student loans are either Direct Subsidized Loans or Direct Unsubsidized Loans, with different repayment terms and conditions.

Direct Subsidized Loans are offered to students who demonstrate a financial need and do not accrue interest while borrowers are in school or during the grace period. On the other hand, direct unsubsidized Loans are available to any student regardless of financial need and accrue interest from the disbursement date.

Both types of loans offer several different repayment plans, depending on which type you have and how much you owe.

Pros of Each Repayment Plan

  1. Standard Repayment Plan: This plan is the default option for federal student loans and extends loan repayment over 10 years, with fixed monthly payments based on your balance.
  2. Graduated Repayment Plan: This allows you to lower your initial payments by extending the loan repayment timeline up to 30 years, with lower payments at the beginning that gradually increase over time.
  3. Extended Repayment Plan: This plan is available for all borrowers regardless of loan type and allows you to extend the repayment timeline up to 25 years to pay less each month.
  4. Income-Based Repayment Plan: This plan bases your monthly payment amount on your annual income and family size, allowing you to cap your payments at 10-15% of your yearly discretionary income.
  5. Pay As You Earn Repayment Plan (PAYE): This plan functions like IBR but caps monthly loan payments at 10% of your discretionary income, and forgiveness is available after 20 years.

How to Change Your Student Loan Repayment Plan

The process is straightforward if you switch your student loan repayment plan. You can do this directly through your loan servicer’s website or customer service department.

The first step is determining your loan type and how much debt you owe. Then, research the repayment plans available and determine which best suits your needs. It's important to remember that the terms of each repayment plan can vary, and you'll need to understand all the details before making a decision.

Once you’ve chosen the option that fits your budget and long-term financial goals, contact your loan servicer to make the switch. Your loan servicer will guide you through the process and answer any questions.

What to Consider When Choosing a New Plan

When choosing a new plan, it's important to consider how changing your repayment plan might affect you and your finances. Here are some things to think about:

  • How much will your monthly payments be? Some plans have lower monthly payments but may require you to pay more interest over time.
  • What happens if you lose your job or are unable to make payments? It's important to understand what your options are in those situations.
  • How long will it take you to pay off the loan? Some plans offer shorter repayment terms, while others can extend the time needed to repay the loan.
  • Will changing your plan help you reduce interest costs over time? Make sure to consider whether or not a new plan could help reduce interest costs over the life of the loan.

What to Do If You Can't Afford Your Payments

If you're struggling to pay your student loans, several options are available to help. You can contact your loan servicer to discuss potential repayment plans or consider enrolling in an income-driven repayment plan. You may also be eligible for student loan forbearance or deferment if you meet certain criteria.

It's important to remember that defaulting on your loans can have serious consequences, so be sure to research your options and choose the one that best fits your budget and long-term financial goals.

Making smart decisions about student loan repayment now will help you stay ahead financially in the future. By understanding how to change repayment plans and researching different options, you can find a plan that works for you and your budget.

Tips for Paying Off Student Loans Faster

If you're looking to pay off your student loans faster, there are several strategies you can use. For instance, you can make extra payments toward your loan balance each month or set up automatic payments to deduct a certain amount from your bank account every month. You can also consider refinancing your student loans with a private lender and possibly get a lower interest rate.

Research and understand all the details before deciding, no matter which strategy you choose. After all, paying off student loans can help you achieve financial freedom and reach your long-term goals faster.

Remember that it's also important to maintain an emergency fund or savings account to be financially prepared for any unexpected expenses. An emergency fund is a great buffer against life’s surprises and can help you stay on track with your finances.


Can you switch your student loan repayment plan?

Yes, you can switch your federal student loan repayment plan. You’re allowed to change plans as often as you like but keep in mind that each time you switch plans, it may increase the total amount of interest paid over the life of the loan. It's important to understand each plan's pros and cons before deciding.

What are two ways to postpone repayment of a student loan?

Two options for postponing a student loan repayment include deferment and forbearance. Deferment allows you to delay payments for up to three years without accruing interest on subsidized loans. Forbearance is another option that allows you to temporarily reduce or suspend payments, but interest continues to accrue during this period.

Is student loan consolidation a good idea?

Student loan consolidation can be a great option if you have multiple loans with different interest rates and repayment plans. Consolidating your loans into one monthly payment can help simplify the repayment process and potentially reduce your overall payments or shorten your repayment period.


Understanding federal student loan repayment plans can be overwhelming, but ensuring you're paying them on time is incredibly important. This blog post has given you an overview of all the plans available and what to consider when choosing a new one. If you need help to make payments, remember that various options exist. Consider reducing your payments through an income-driven plan or consolidation and forgiveness programs. And if you want to pay off your loans faster, find ways to add extra cash each month or refinance your loans for better terms and interest rates.