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Repayment |
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Depending on what you qualify for, your lender will give you the choice of several repayment plans including standard, extended, graduated or income sensitive. Repayment plans range from ten to twenty-five years. The most important differences between these repayment plans are your monthly payment amount; the length of the repayment term and the total amount of interest that you’ll be paying. Keep in mind, the longer your repayment plan is, the lower your monthly payment will be but you will pay more interest in the long run. It is important to thoroughly investigate your options before making a decision on your repayment plan.
- Standard
Provides fixed monthly payment amounts over a specific period of time. The monthly payment is no less than $50, and the repayment period is a maximum of 10 years (120 months).
- Extended
The extended repayment schedule is limited to new borrowers on or after October 7, 1998, with an outstanding balance of principal and interest in FFELP loans totaling more than $30,000. The maximum repayment term is 25 years.
- Graduated
A graduated repayment schedule allows your payments to start low and then incrementally increase, with up to 10 years to pay. The final payment amount will not exceed three times the original payment amount.
- Income Sensitive
Income-sensitive payment amounts are based on a percentage of your gross monthly income and the amount you borrowed, but must at least cover interest. Repayment terms will vary based on the percentage you request, your income and the loan amount.
- Links to tools and external resources
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