Under a graduated repayment plan, payments start out low and increase during the course of the repayment period. The payments usually increase every two years. For FFEL Loans and Direct Loans that entered repayment on or after July 1, 2006, the loan still must be paid over a period of 10 years. However, if your loan balance is high enough, you can make graduated payments as part of an extended repayment plan. Graduated plans tend to work best for borrowers who are likely to have relatively quick increases in earnings over time.
Example of Typical Direct and FFEL Stafford Loans and PLUS Loans: