Repayment Plans

Your loan holder should inform you of your repayment terms before you enter repayment. There are a variety of repayment plans available. If you are considering another repayment plan, ask your loan holder which option is best for you. Your account will be placed on a standard repayment plan unless you request a different plan from your loan holder.

Prepayment

• Smartest choice.
• You can prepay all or part of your loan at any time without penalty.
• Prepayment may substantially decrease your total interest costs.
• Be sure to indicate on any prepayment that your loan holder should apply it to the principal balance.

Standard Repayment

• Lowest total cost if you are not prepaying.
• Fixed schedule of equal monthly payments.
• Maximum 10-year repayment period.
• Minimum $50 monthly payment.
• Ideal for borrowers capable of meeting full monthly principal and interest payments.

Graduated Repayment

• Short-term relief.
• Monthly schedule that starts with small payments that gradually increase over time.
• Maximum 10-year repayment period.
• Your loan holder will set your minimum monthly payment, which generally must at least equal your monthly interest charge.
• Assumes your income will grow over time to cover the increasing loan payments.

Income-Sensitive Repayment

• Temporary safety-net.
• Monthly schedule that fixes payments for one year at a time. Payments may increase or decrease each year as your income rises or falls.
• Maximum 10-year repayment period that can be extended annually up to five years if your payments are less than the standard principal and interest.
• Your loan holder will set your minimum monthly payment based on income documentation you provide.
• Monthly payments generally range from 4 percent to 25 percent of your monthly gross income.

Extended Repayment

• Available if you received your oldest outstanding loan through the FFEL Program on or after October 7, 1998, and if your total FFEL Program loan debt exceeds $30,000.
• Fixed annual or graduated repayment schedule.
• Maximum 25-year repayment period.
• Your loan holder will set your minimum monthly payment, which must at least equal the amount of interest due. The minimum annual payment amount is $600.

Income-Based Repayment: New July 1, 2009

• For borrowers with "partial financial hardship."
• Payment amounts may be limited to no more than 15% of the amount by which the borrower's (and, if applicable, the borrower's spouse's) annual adjusted gross income exceeds 150% of the poverty line applicable to the borrower's family size, divided by 12.
• Available to Federal Stafford Loan borrowers (subsidized or unsubsidized loans) and graduate or professional PLUS loan borrowers.
• Maximum repayment period may be between 10 and 25 years.

Repayment Amounts

Whether you took out $1,000 or $10,000 in loans, if you want to know what your monthly payments might be, this repayment chart can help you.