Federal Stafford- and PLUS-loan borrowers can choose from several flexible options for paying back their education loans:

Standard repayment
Typically this is the least-expensive option in terms of total interest costs. Most federal education-loan borrowers choose this option. This option provides a fixed monthly payment of at least $50 over a period of up to 10 years.

If your monthly student-loan payments under this option exceed 8 percent to 10 percent of your gross monthly income, however, you should consider one of the following flexible repayment options or loan consolidation.

Graduated repayment
Monthly payments start low and increase over time. Graduated repayment may be a good choice if you currently have limited income but expect higher earnings in the future. Unless you consolidate several federal education loans, the maximum repayment term under this option is 10 years. Total interest costs are higher under this option than with standard repayment.

Income-sensitive repayment
Payments can be adjusted up or down annually to account for changes in your income. The minimum payment must be enough to cover accruing interest. The repayment period of 10 years can be extended to 15 years under a special forbearance provision. Total interest costs will be higher with this option than with standard repayment.

Extended repayment
This option is available only if you did not have a balance on a Federal Family Education Loan Program loan as of Oct. 7, 1998, or at the time you received a FFELP loan after Oct. 7, 1998. In addition, extended repayment is available only if you have an outstanding education-loan balance of more than $30,000.

Under this plan, you may reduce the amount of your monthly payment by spreading payments over a period of up to 25 years. You may choose to make payments over this extended period under a level or graduated schedule. Because payments are stretched over a longer term, total interest costs will be significantly higher than under the other repayment plans.

Income-based repayment
Beginning July 1, 2009, you may qualify for this new repayment option if your loan payments during the year exceed 15 percent of your "discretionary" income. Under this plan you may limit your payments to 15 percent of your "discretionary" income.

Use our loan-repayment calculator to estimate your monthly payments and total interest costs under these options.

Loan consolidation
A Federal Consolidation loan permits you to bundle multiple education loans into one new loan with the benefit of a convenient single monthly loan payment. Depending on your total outstanding loan balance, you also may be able to extend your repayment period and lower your monthly payments by as much as half.

Loan consolidation is not the best choice for every borrower. You are likely to pay more total interest because you are extending your payment period and making smaller payments over a longer term.

Use our loan-consolidation calculator to estimate your monthly payments and total interest costs for a consolidation loan.

Deferment
If you are unemployed, facing certain economic hardships, on active duty in the military, or returning to school for additional studies, you may qualify for a deferment. Borrowers who meet the qualifications and submit the required documentation are entitled to defer principal payments, in the case of unemployment or economic hardship, for up to a total of three years during the term of their loans. There is no maximum time limit for an in-school deferment.

Forbearance
If you don't meet the standards for deferment but still need payment relief, you may appeal to your lender or loan servicer for forbearance. Forbearance permits a borrower to reduce or postpone payments or extend the time for making payments, usually at the discretion of the lender. Forbearance requests typically are granted for periods of up to 12 months.

Questions?
Contact your loan servicer or the holder of your loans for more information about loan-repayment options. If you don't know who services or holds your loans, use the National Student Loan Data System.