When Federal student loans enter repayment, they are automatically enrolled in standard repayment. Under it, a borrower has 10 years to repay the total amount of his or her loan. The loan servicer (whoever is sending the bill) determines the monthly bill by calculating a fixed monthly payment amount that will pay off the original loan amount plus all accrued interest after 120 equal payments (12 payments per year).
Payments pay off the interest building up each month, plus part of the original loan amount. Depending on the amount of the loan, the loan term may be shorter than 10 years. There is a $50 minimum monthly payment.