685.210—Choice of repayment plan.
(a) Initial selection of a repayment plan.
(1)
Before a Direct Loan enters into repayment, the Secretary provides the borrower a description of the available repayment plans and requests the borrower to select one. A borrower may select a repayment plan before the loan enters repayment by notifying the Secretary of the borrower's selection in writing.
(2)
If a borrower does not select a repayment plan, the Secretary designates the standard repayment plan described in § 685.208(b) for the borrower.
(b) Changing repayment plans.
(1)
A borrower may change repayment plans at any time after the loan has entered repayment by notifying the Secretary. However, a borrower who is repaying a defaulted loan under the income contingent repayment plan under § 685.211(d)(3)(ii) may not change to another repayment plan unless—
(i)
The borrower was required to and did make a payment under the income contingent repayment plan in each of the prior three (3) months; or
(ii)
The borrower was not required to make payments but made three reasonable and affordable payments in each of the prior three months; and
(2)
(i)
A borrower may not change to a repayment plan that has a maximum repayment period of less than the number of years the loan has already been in repayment, except that a borrower may change to either the income contingent or income-based repayment plan at any time.
(ii)
If a borrower changes plans, the repayment period is the period provided under the borrower's new repayment plan, calculated from the date the loan initially entered repayment. However, if a borrower changes to the income contingent repayment plan or the income-based repayment plan, the repayment period is calculated as described in § 685.209(c)(4) or § 685.221(b)(6), respectively.