34 C.F.R. § 685.208

Fixed payment repayment plans

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(a) General. Under a fixed payment repayment plan, the borrower's required monthly payment amount is determined based on the amount of the borrower's Direct Loans, the interest rates on the loans, and the repayment plan's maximum repayment period.

(b) Fixed Repayment Plans for Direct Loans Made Before July 1, 2026. (1) Standard repayment plan for all Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct PLUS Loan borrowers, who have not received a Direct Loan on or after July 1, 2026, and for Direct Consolidation Loan borrowers who entered repayment before July 1, 2006, and have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full within ten years from the date the loan entered repayment by making fixed monthly payments.

(ii) A borrower's payments under this repayment plan are at least $50 per month, except that a borrower's final payment may be less than $50.

(iii) The number of payments or the fixed monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).

(iv) The repayment period for the repayment plan described in this paragraph (b)(1) does not include periods of authorized deferment or forbearance.

(2) Standard repayment plan for Direct Consolidation Loan borrowers entering repayment on or after July 1, 2006, and who have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full by making fixed monthly payments over a repayment period that varies with the total amount of the borrower's student loans, as described in paragraph (b)(2)(iii) of this section.

(ii) A borrower's payments under this repayment plan are at least $50 per month, except that a borrower's final payment may be less than $50.

(iii) Under this repayment plan, if the total amount of the Direct Consolidation Loan and the borrower's other student loans, as defined in § 685.220(i), is—

(A) Less than $7,500, the borrower must repay the Consolidation Loan within 10 years of entering repayment;

(B) Equal to or greater than $7,500 but less than $10,000, the borrower must repay the Consolidation Loan within 12 years of entering repayment;

(C) Equal to or greater than $10,000 but less than $20,000, the borrower must repay the Consolidation Loan within 15 years of entering repayment;

(D) Equal to or greater than $20,000 but less than $40,000, the borrower must repay the Consolidation Loan within 20 years of entering repayment;

(E) Equal to or greater than $40,000 but less than $60,000, the borrower must repay the Consolidation Loan within 25 years of entering repayment; and

(F) Equal to or greater than $60,000, the borrower must repay the Consolidation Loan within 30 years of entering repayment.

(iv) The repayment period for the repayment plan described in this paragraph (b)(2) does not include periods of authorized deferment or forbearance.

(3) Extended repayment plan for all Direct Loan borrowers who entered repayment before July 1, 2006, and who have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full by making fixed monthly payments within an extended period of time that varies with the total amount of the borrower's loans, as described in paragraph (b)(4)(iv) of this section.

(ii) A borrower makes fixed monthly payments of at least $50, except that a borrower's final payment may be less than $50.

(iii) The number of payments or the fixed monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).

(iv) Under the repayment plan, if the total amount of the borrower's Direct Loans is—

(A) Less than $10,000, the borrower must repay the loans within 12 years of entering repayment;

(B) Greater than or equal to $10,000 but less than $20,000, the borrower must repay the loans within 15 years of entering repayment;

(C) Greater than or equal to $20,000 but less than $40,000, the borrower must repay the loans within 20 years of entering repayment;

(D) Greater than or equal to $40,000 but less than $60,000, the borrower must repay the loans within 25 years of entering repayment; and

(E) Greater than or equal to $60,000, the borrower must repay the loans within 30 years of entering repayment.

(v) The repayment period for the repayment plan described in this paragraph (b)(3) does not include periods of authorized deferment or forbearance.

(4) Extended repayment plan for all Direct Loan borrowers entering repayment on or after July 1, 2006, and who have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a new borrower with more than $30,000 in outstanding Direct Loans accumulated on or after October 7, 1998, must repay either a fixed annual or graduated repayment amount over a period not to exceed 25 years from the date the loan entered repayment. For this repayment plan, a new borrower is defined as an individual who has no outstanding principal or interest balance on a Direct Loan as of October 7, 1998, or on the date the borrower obtains a Direct Loan on or after October 7, 1998.

(ii) A borrower's payments under this plan are at least $50 per month and will be more if necessary to repay the loan within the required time period.

(iii) The number of payments or the monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).

(iv) The repayment period for the repayment plan described in this paragraph (b)(4) does not include periods of authorized deferment or forbearance.

(5) Graduated repayment plan for all Direct Loan borrowers who entered repayment before July 1, 2006, and who have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full by making payments at two or more levels within a period of time that varies with the total amount of the borrower's loans, as described in paragraph (b)(5)(iv) of this section.

(ii) The number of payments or the monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).

(iii) No scheduled payment under this repayment plan may be less than the amount of interest accrued on the loan between monthly payments, less than 50 percent of the payment amount that would be required under the standard repayment plan described in paragraph (b)(1) of this section, or more than 150 percent of the payment amount that would be required under the standard repayment plan described in paragraph (b)(1) of this section.

(iv) Under this repayment plan, if the total amount of the borrower's Direct Loans is—

(A) Less than $10,000, the borrower must repay the loans within 12 years of entering repayment;

(B) Greater than or equal to $10,000 but less than $20,000, the borrower must repay the loans within 15 years of entering repayment;

(C) Greater than or equal to $20,000 but less than $40,000, the borrower must repay the loans within 20 years of entering repayment;

(D) Greater than or equal to $40,000 but less than $60,000, the borrower must repay the loans within 25 years of entering repayment; and

(E) Greater than or equal to $60,000, the borrower must repay the loans within 30 years of entering repayment.

(v) The repayment period for the repayment plan described in this paragraph (b)(5) does not include periods of authorized deferment or forbearance.

(6) Graduated repayment plan for Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct PLUS Loan borrowers entering repayment on or after July 1, 2006, and who have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full by making payments at two or more levels over a period of time not to exceed ten years from the date the loan entered repayment.

(ii) The number of payments or the monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in § 685.202(a).

(iii) A borrower's payments under this repayment plan may be less than $50 per month. No single payment under this plan will be more than three times greater than any other payment.

(iv) The repayment period for the repayment plan described in this paragraph (b)(6) does not include periods of authorized deferment or forbearance.

(7) Graduated repayment plan for Direct Consolidation Loan borrowers entering repayment on or after July 1, 2006, and who have not received a Direct Loan on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full by making monthly payments that gradually increase in stages over the course of a repayment period that varies with the total amount of the borrower's student loans, as described in paragraph (b)(7)(iii) of this section.

(ii) A borrower's payments under this repayment plan may be less than $50 per month. No single payment under this plan will be more than three times greater than any other payment.

(iii) Under this repayment plan, if the total amount of the Direct Consolidation Loan and the borrower's other student loans, as defined in § 685.220(i), is—

(A) Less than $7,500, the borrower must repay the Consolidation Loan within 10 years of entering repayment;

(B) Equal to or greater than $7,500 but less than $10,000, the borrower must repay the Consolidation Loan within 12 years of entering repayment;

(C) Equal to or greater than $10,000 but less than $20,000, the borrower must repay the Consolidation Loan within 15 years of entering repayment;

(D) Equal to or greater than $20,000 but less than $40,000, the borrower must repay the Consolidation Loan within 20 years of entering repayment;

(E) Equal to or greater than $40,000 but less than $60,000, the borrower must repay the Consolidation Loan within 25 years of entering repayment; and

(F) Equal to or greater than $60,000, the borrower must repay the Consolidation Loan within 30 years of entering repayment.

(iv) The repayment period for the repayment plan described in this paragraph (b)(7) does not include periods of authorized deferment or forbearance.

(8) Tiered Standard repayment plan for Direct Loan borrowers who received a Direct Loan before July 1, 2026, and also received a Direct Loan that was made on or after July 1, 2026.

(i) Under this repayment plan, a borrower must repay a loan in full by making fixed monthly payments over a repayment period that varies with the total amount of the borrower's Direct Loans, as described in paragraph (b)(8)(ii) of this section.

(ii) A borrower's payments under this repayment plan are at least $50 per month, except that when a borrower's balance is less than $50, the minimum payment will be equal to the outstanding amount due.

(iii) Under this repayment plan, if the total amount of Direct Loans at the time the borrower is entering repayment, is—

(A) Less than $25,000, the borrower must repay the Direct Loan within 10 years of entering repayment;

(B) Equal to or greater than $25,000 but less than $50,000, the borrower must repay the Direct Loan within 15 years of entering repayment;

(C) Equal to or greater than $50,000 but less than $100,000, the borrower must repay the Direct Loan within 20 years of entering repayment; and

(D) Equal to or greater than $100,000, the borrower must repay the Direct Loan within 25 years of entering repayment.

(c) Fixed Repayment Plans for Direct Loans Made On or After July 1, 2026. The fixed repayment plans under this paragraph (c) shall only apply to Direct Loans made on or after July 1, 2026.

(1) Tiered Standard repayment plan for Direct Loan borrowers who received a Direct Loan on or after July 1, 2026.

(iii) Under this repayment plan, if the total amount of Direct Loans at the time the borrower is entering repayment, is—

(A) Less than $25,000, the borrower must repay the Direct Loan within 10 years of entering repayment;

(B) Equal to or greater than $25,000 but less than $50,000, the borrower must repay the Direct Loan within 15 years of entering repayment;

(C) Equal to or greater than $50,000 but less than $100,000, the borrower must repay the Direct Loan within 20 years of entering repayment; and

(D) Equal to or greater than $100,000, the borrower must repay the Direct Loan within 25 years of entering repayment.

[91 FR 23886, May 1, 2026]

Notes of Decisions

Cited in 38 cases (1 in the last 5 years), 1999–2021 · leading case: Educ. Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009).

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Educ. Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). · cites it 6× “§ 1087e(d); 34 C.F.R. § 685.208 . The most generous plan is the Income Contingent Repayment Plan ("ICRP"), which permits an eligible borrower to make "varying annual repayment amounts based on the income of the borrower, paid over an extended period of time prescribed by the…”

Bronsdon v. Educ. Credit Mgmt. Corp. (In Re Bronsdon), 435 B.R. 791 (1st Cir. BAP 2010). · cites it 2× “34 C.F.R. § 685.208 (k). ICRP payments are recalculated annually based on changes to the debtor's reported household adjusted gross income.”

Newman v. Educ. Credit Mgmt. Corp. (In Re Newman), 304 B.R. 188 (E.D. Pa. 2002). · cites it 2× “See 34 C.F.R. § 685.208 . The option which the defendant in this proceeding emphasizes is the one styled the “income contingent repayment plan.”

Walker v. Sallie Mae Servicing Corp. (In Re Walker), 650 F.3d 1227 (8th Cir. 2011). · cites it 2× “If the SUV and mortgage payments attributable to the deck are excluded entirely, the Walkers have left-over income of $425.69 per month, which falls short of the minimum ICRP payment of $593.”

Sperazza v. Educ. Credit Mgmt. Corp. (In Re Sperazza), 366 B.R. 397 (Bankr. E.D. Pa. 2007). · cites it 2× “See 34 C.F.R. § 685.208 . The option which ECMC emphasizes in this proceeding is the one styled the “income contingent repayment plan” or ICRP.”

Jones v. Educ. Credit Mgmt. Corp. (In Re Jones), 392 B.R. 116 (Bankr. E.D. Pa. 2008). · cites it 2× “See 34 C.F.R. § 685.208 . The option which ECMC emphasizes in this proceeding is the one styled the “income contingent repayment plan” or ICRP.”

In re Metz, 589 B.R. 750 (Bankr. D. Kan. 2018). · cites it 2× “See also 34 C.F.R. §§ 685.208 -209 (describing repayment plans generally and income-contingent repayment plans).”

Regan v. U.S. Dep't of Educ. (In re Regan), 590 B.R. 567 (Bankr. D.N.M. 2018). · cites it 2× “See 34 C.F.R. § 685.208 (k) (describing the income-contingent repayment plans) and 34 C.”

Tuttle v. Educ. Credit Mgmt. Corp. (In re Tuttle), 600 B.R. 783 (Bankr. E.D. Wis. 2019). “, 34 C.F.R. §§ 685.208 - 209 ; Exhibit 107.”

Cota v. U.S. Dep't of Educ. (In Re Cota), 298 B.R. 408 (Bankr. D. Ariz. 2003). “The Debtors’ did not dispute that all payments listed in Defendant's Exhibit 17 as RG-WG were made by wage garnishments.”

Douglas v. Educ. Credit Mgmt. Corp. (In Re Douglas), 366 B.R. 241 (Bankr. M.D. Ga. 2007). “The terms and conditions of the four repayment options are set forth in the Code of Federal Regulations at 34 C.F.R. § 685.208 through 685.210. A party participating in the Ford Program may change from one repayment option to another at any time.”

Murphy v. Mae (In Re Murphy), 305 B.R. 780 (Bankr. E.D. Va. 2004). “Ford Federal Direct Loan Program provided for under 34 C.F.R. § 685.208 (2003). Under the Income Contingent Repayment program, the annual amount payable by a borrower is the lesser of (a) the amount the borrower would repay annually over 12 years or (b) 20% of discretionary…”

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— 34 C.F.R. § 685.208(a)(2)(iv)(D) — 1 case

Hock v. Dep't of Educ. (Bankr. W.D.N.C. 2021).

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