# Create a payment plan

A payment plan creates a temporary loan schedule with a different payment amount for a set number of periods. After the plan ends, the remaining periods return to the original recurring amount. Use this tool for hardship situations where the borrower needs lower payments for a limited time.

**Availability:** All clients
**Required permissions:** `loan:paymentplan.create`
**Loan status:** `active`
**Loan types:** Installment only

## Before you begin

- Only one active payment plan is allowed at a time. Creating a new payment plan overwrites any existing schedule modifications (due date deferrals, change terms adjustments).
- While a payment plan is active, other hardship tools cannot be used. Cancel the payment plan first, then make additional modifications.
- To cancel an active payment plan, return to this tool — the form displays the active plan with cancellation options.


## Create a payment plan

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Payment plan**.
2. Select the **Effective due date** — the due date from which the payment plan begins. You can select the upcoming due date or a later one.
3. Choose whether to **Extend duration**. When selected, the system adds extra due dates to the end of the loan to compensate for the reduced payments.
4. Enter the **Number of periods** for the payment plan.
5. Optionally select **Interest only** to create plan periods where only interest is due.
6. Enter the plan **Amount** — the recurring payment the borrower pays during the plan.
7. Review the **Payment schedule** summary and select **View full payment schedule** to see all due dates and amounts.
8. Optionally select **Send notice to borrower** to email the borrower about the schedule change.
9. If your company requires a Case ID, select a case from the **Case ID** dropdown. See [Global behaviors — Case ID requirement](/servicing-operations/agent-only-tools/agent-tools-overview#case-id-requirement).
10. Select **Create payment plan**.


The payment plan takes effect immediately. The payment schedule updates to reflect the plan periods followed by the original recurring amounts.

## Cancel a payment plan

If a payment plan is active, this tool displays the plan details instead of the creation form.

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Payment plan**.
2. Review the active plan details.
3. Select **Cancel payment plan**.
4. Enter a **Cancellation reason**.
5. Optionally enter additional **Details**.
6. Confirm the cancellation.


After cancellation, the loan returns to its original recurring payment schedule.

## Field reference

### Create plan

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Effective due date** | The due date from which the plan begins. | Yes | Select from upcoming due dates |
| **Extend duration** | Adds extra due dates to the end of the loan to accommodate the plan. | No | Checkbox |
| **Number of periods** | How many payment periods the plan covers. | Yes | Number |
| **Interest only** | Creates plan periods where only interest is due. | No | Checkbox |
| **Amount** | The recurring payment amount during the plan. | Yes | Currency |
| **Send notice to borrower** | Sends an email about the schedule change. | No | Checkbox |
| **Payment schedule** | Preview of the plan schedule with a summary (e.g., "3 payments of $25.00, 6 payments of $100.00"). | — | Read-only display |
| **Case ID** | The case associated with this action. | Conditional | Select from open cases. Required when `forceCaseIdOnAgentActions` is enabled. |


### Cancel plan

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Cancellation reason** | The reason for canceling the plan. | Yes | Text |
| **Details** | Additional context about the cancellation. | No | Text |


## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Change loan terms](/servicing-operations/agent-only-tools/agent-tools-change-terms)
- [Promise to pay](/servicing-operations/agent-only-tools/agent-tools-promise-to-pay)
- [Defer payments](/servicing-operations/agent-only-tools/agent-tools-deferrals)