Federal Student Loan Repayment Options

Use the table below to help you find which repayment option is best for you.

Repayment Options  

Standard Repayment

  • Repayment period - 10 years
  • Pay down principal and interest each month
  • Lowest total cost (other than prepayment)
  • Consistent monthly payments
  • Minimum $50 monthly payment
  • View 10-year repayment example

Graduated Repayment

  • Repayment period - 10 years
  • Make smaller payments at first, then larger payments over the remaining years
  • Payments may be easier to manage straight out of school, but you'll pay more interest over the life of the loan
  • Assumes your income will grow to cover your payment over time
  • Your lender will set your minimum payment

Extended Repayment

  • Repayment period - 25 years
  • Take more time to pay back your loans
  • Choose a standard or graduated repayment schedule (see above)
  • Your lender will set your minimum monthly payment, which must be at least equal to the amount of interest due
  • You may qualify if you have more than $30,000 in Federal Loans

Income-Sensitive Repayment

  • Repayment period - 10-15 years
  • Adjust your payments annually based on your income
  • Your lender will set your minimum payment based on your income documentation
  • Monthly payments generally range from 4 to 25 percent of your gross monthly income
  • Repayment period can be extended annually, up to five years

Income-Based Repayment

  • For borrowers with "partial financial hardship"
  • Payment amount determined by ratio of household current income to applicable poverty line
  • Available to Federal Stafford Loan borrowers (subsidized or unsubsidized loans) and graduate or professional PLUS loan borrowers
  • Maximum repayment period may be between 10 and 25 years

Repayment Options Comparison Table

Compare three different repayment options for a $15,000 Federal Direct Subsidized Stafford Loan at the rate of 6.8%*.  If you are a Commerce Bank borrower, call 800-666-3910 to determine your actual repayment amount.


Standard Repayment

Graduated Repayment

Income-Sensitive Repayment

Repayment Period

120 payments
(10 years)

120 payments
(10 years)

132 payments
(11 years)

Starting Monthly Payment



(year 1)

Ending Monthly Payment



(years 2 through 11)

Interest Paid




Total Amount Paid




Important Disclaimers:

  • Interest rates are effective 7/1/11. The rates and other information set forth above have been obtained from sources deemed reliable, but do not constitute representations of Commerce Bank, nor shall this be considered an offer by Commerce Bank to fund any loan at rates other than those established by the United States Department of Education.
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