What is true about the extended repayment plan?

The extended repayment plan is designed specifically for borrowers with federal loan debts that exceed a certain threshold, which is $30,000. This plan provides borrowers with a longer repayment term, typically up to 25 years, allowing for smaller monthly payments spread over a longer period.

This approach can be particularly beneficial for those with larger loan balances, as it can help manage financial strain by reducing the monthly payment amount, although it may lead to paying more interest over time due to the extended period.

The other options misrepresent the characteristics of the extended repayment plan. For instance, it is not suitable for all loan amounts, as it specifically applies only to those with federal loan debt that exceeds $30,000. Additionally, the extended repayment plan does not inherently offer lower interest rates than standard repayment plans; rather, it focuses more on the structure of repayment duration than on interest rates. Lastly, the plan does not allow for annual payment increases. Instead, the payments typically remain fixed or are structured based on the extended timeline, rather than escalating. Thus, option B accurately captures the essence of the extended repayment plan.