The graduated plan keeps a 10-year payoff but starts with lower payments that rise about every two years. The extended plan stretches repayment up to 25 years with fixed or graduated payments, and requires more than $30,000 in Direct Loans. Both lower early payments at the cost of more interest, neither offers forgiveness, and they’re available only for loans disbursed before July 1, 2026.
How the two plans work
| Graduated | Extended | |
|---|---|---|
| Term | Up to 10 years | Up to 25 years |
| Payments | Start low, rise about every 2 years | Fixed or graduated |
| Eligibility | Direct Loans before July 1, 2026 | More than $30,000 in Direct Loans, before July 1, 2026 |
| Forgiveness | None | None |
| PSLF | Does not qualify | Does not qualify |
Under federal rules a graduated payment can’t be less than the monthly interest or more than three times any other payment. The exact schedule comes from your servicer; our figures use an illustrative five-step model.
Payment examples
| Balance | 10-yr standard | Graduated (model) | Graduated interest | Extended 25-yr fixed | Extended interest |
|---|---|---|---|---|---|
| $40,000 at 6.52% | $455 | $293 → $716 | $17,779 | $271 | $41,175 |
| $60,000 at 8.07% | $730 | $478 → $1,166 | $34,081 | $466 | $79,763 |
| $100,000 at 8.07% | $1,217 | $796 → $1,944 | $56,802 | $776 | $132,938 |
On $60,000 at 8.07%, the graduated plan starts $253 a month below the standard payment but ends $436 above it. The extended plan cuts the payment to $466 but more than doubles the interest.
Who should consider them
- Graduated: new graduates who expect steady raises and want to be debt-free in 10 years.
- Extended: borrowers with large balances who need a lower fixed payment and don’t want to recertify income every year.
- Neither: public-service workers (they don’t count for PSLF) and low-income borrowers (RAP or IBR is usually cheaper).
Extended or graduated vs RAP and the Tiered Standard plan
How the old plans stack up against the two new ones on $60,000 at 8.07%:
| Plan | First payment | Years | Total interest | Forgiveness / PSLF |
|---|---|---|---|---|
| 10-year standard (pre-2026) | $730 | 10 | $27,622 | No / yes |
| Graduated (model) | $478 | 10 | $34,081 | No / no |
| Extended fixed | $466 | 25 | $79,763 | No / no |
| Tiered Standard (new loans) | $504 | 20 | $61,075 | No / no |
| RAP at $60,000 AGI | $250 | Up to 30 | Depends on income | After 360 pmts / yes |
The graduated plan costs only modestly more than the standard plan because it still ends in 10 years. The extended plan costs far more because interest runs for 25 years. If you need a lower payment mainly because your income is low right now, RAP or IBR may lower it further while counting toward PSLF — and you can move back to a fixed plan later if your income rises, as long as all your loans predate July 2026.
Switching between plans is done through your servicer or StudentAid.gov. Before you switch, ask whether any unpaid interest would be capitalized and how the change affects your forgiveness count.
Check what fits your take-home payRun your salary through the paycheck calculator to see how much a student loan payment leaves for everything else.
Frequently asked questions
What is the extended repayment plan?
A plan for borrowers with more than $30,000 in Direct Loans that spreads repayment over up to 25 years with fixed or graduated payments. It is available only for loans disbursed before July 1, 2026.
How does graduated repayment work?
Payments start lower and increase about every two years, with the loan paid off within 10 years. No payment can be less than the monthly interest or more than three times any other payment.
Do extended or graduated plans qualify for PSLF?
No. Only income-driven plans (such as RAP or IBR) and the 10-year standard plan produce qualifying payments.
Can new borrowers choose the extended or graduated plan?
No. Loans first disbursed on or after July 1, 2026 can only use the Tiered Standard plan or RAP.
Related student loan guides
- Tiered Standard plan10, 15, 20 or 25 years by balance
- IBR vs RAPWhich income-driven plan is cheaper
- RAP explainedPayment chart, $50 match, 30-year forgiveness
- SAVE plan ended: what now?Deadlines and your options
- How much debt is too much?Income needed, 10% rule
- How student loan interest worksDaily accrual, subsidized vs unsubsidized
- Monthly payment on $40,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $60,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $100,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- Commonwealth of Massachusetts, “The New Tiered Standard Plan” (mass.gov) — balance tiers 10/15/20/25 years.
- California DFPI, “Student loan borrowers: important student loan changes effective July 1” — OBBBA loan limits; university financial aid OBBBA FAQs.
- NerdWallet, “What Is the New Repayment Assistance Plan (RAP)?” (updated July 30, 2026) — RAP AGI brackets.
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.