Your loan is real money with real consequences.

Several options are available for repayment of your student loan, allowing you to choose the one that best meets your financial needs. If you wish to change the terms of your loan, you can ask your servicer for a:

The servicer must allow you to change your loan repayment plan at least once a year.

Standard Repayment

Fixed (substantially equal) monthly payment amounts are paid over a specific period of time.

  • Your monthly payment must be at least $50.
  • For loans taken before July 1, 2006, the payment amount may be adjusted to reflect annual changes in the variable interest rate.
  • The repayment term cannot exceed 10 years, excluding in-school, grace, and deferment or forbearance periods.
Loan Amount
Monthly Payment
Total Paid*
(Loan + Interest)
$10,000
$115
$13,810
$50,000
$575
$69,048

*A subsidized Stafford loan repaid at 6.8 percent interest, assuming the standard repayment plan of 10 years, or 120 payments.

graduated repayment

Payments are smaller at the beginning of the repayment period and gradually increase over time.

  • No single payment can be more than three times greater than any other payment.
  • For loans taken before July 1, 2006, the payment amount may be adjusted to reflect annual changes in the variable interest rate.
  • The repayment term is generally 10 years.
  • Payment must cover at least the interest due.
Loan Amount
Beginning Monthly Payment
Ending Monthly Payment
Total Paid*
(Loan + Interest)
$10,000
$57
$135
$14,353
$50,000
$283
$677
$71,784

*A subsidized Stafford loan repaid at 6.8 percent interest, assuming a graduated repayment plan of 10 years, or 120 payments.

income-based repayment

  • You must demonstrate partial financial hardship to qualify.
  • Payments are 15 percent of your discretionary income.
  • Payments are adjusted annually based on your Adjusted Gross Income and family size.
  • Payments can be less than interest due.
  • Offers additional benefits such as loan forgiveness, interest subsidies, and restricting capitalization.
  • Contact your lender for more details.
Loan Amount
Gross Monthly Income
Annual Poverty Level
Monthly Payment
Total Paid*
(Loan + Interest)
$10,000
$2,000
$10,400
$105
$14,442
$50,000
$3,000
$10,400
$255
$76,500**

*A subsidized Stafford loan repaid at 6.8 percent interest, assuming the income-based repayment plan.
**Balance remaining after 25 years of repayment will be forgiven and considered taxable income.

income-sensitive repayment

Payments are adjusted annually based on your monthly gross income.

  • The payment amount must cover at least the interest due.
  • The repayment term cannot exceed 15 years.
Loan Amount
Gross Monthly Income
Monthly Payment

Total Paid*
(Loan + Interest)

   
First 5 years: interest only
Remaining 10years
 
$10,000
$1,250
$57
$115
$17,210
$50,000
$4,000
$283
$575
$86,028

*A subsidized Stafford loan repaid at 6.8 percent interest, assuming you requested the monthly payment be based on 4 percent of your gross monthly income.

extended repayment

This option is available only to borrowers whose loans were taken out on or after October 7, 1998, with FFEL loan balance greater than $30,000.

  • You can select either a standard or graduated repayment plan.
  • The repayment term cannot exceed 25 years.
  • Payment must cover at least the interest due.
Loan Amount
Monthly Payment
Years in Repayment
Total Paid*
(Loan + Interest)
$50,000
$347
25
$104,112

*A subsidized Stafford loan repaid at 6.8 percent interest, assuming an extended repayment lan of 25 years, or 300 fixed monthly payments.

Pay as you earn (paye) repayment plan

This repayment plan for eligible Direct Loans is designed to limit your required monthly payment to an amount that is affordable based on your income and family size.

More information can be found at StudentAid.gov.

income-contingent repayment plan for direct loans

Your monthly payment amount will be based on your annual income (and that of your spouse if you are married), your family size, and the total amount of your Direct Subsidized and Unsubsidized loans.  As your income changes, your payments may change. if you do not repay your loan after 25 years under this plan, the unpaid portion will be forgiven.  You may have to pay income tax on any amount forgiven.  Beginning July 1, 2009, student PLUS Loan borrowers may choose this plan.

Loan Amount
Gross Monthly Income
Family Size
Monthly Payment
Total Paid*
(Loan + Interest)
$10,000
$1,500
1
$62
$20,743
$50,000
$4,000
3
$495
$73,475**

*A subsidized Stafford loan repaid at 6.8 percent interest.
**Balance remaining after 25 years for repayment will be forgiven and considered taxable income.

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