Repayment Options
Level Repayment Schedule
The monthly installment amount remains the same throughout repayment, although small changes in the monthly installment amount may occur for loans with a variable interest rate if the annual interest rate increases or decreases.
See what your estimated level repayment amount will be.
Now, see if this amount will fit into your monthly budget.
If this installment amount does not fit into your budget, call your lenders or servicer to get estimates for the following repayment alternatives:
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Graduated Repayment Schedule
This repayment schedule is designed knowing that borrowers should make more money as they progress in their careers. Payments are initially lower and then increase later in the repayment schedule.
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Income-based Repayment
This repayment schedule is designed for borrowers who may be experiencing financial hardship manage their monthly payments. It may extend the repayment period past the standard 10-years and offers loan forgiveness to borrowers who have made 300 qualifying payments on/after July 1, 2009.
To qualify for IBR, your initial monthly payment amount on all of your eligible loans calculated on a standard 10-year repayment plan must be more than 15% of the difference between your adjusted gross income and 150% of the poverty line for your family size.
Learn more about Income-based Repayment at studentaid.ed.gov.
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Income Sensitive Repayment
This is the most flexible plan, but it can be the most expensive in the long run, and you must reapply annually. The monthly payment amount will be established based on your gross monthly income and student loan debt.
You provide your lender/servicer with information about your total gross monthly income received from all sources. Your income information cannot be more than 90 days old. If married, do not include your spouse's income.
If the student loan repayment options above do not fit into your budget, contact your lender or servicer to see if you qualify for the 25 Year Extended Repayment Plan.
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25 Year Extended Repayment
Your current loan balance must be at least $30,000.00. Your first loan must have been disbursed on or after Oct. 7, 1998. You can request this schedule to either be set up on a Level or Graduated Repayment plan, if you qualify.
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Once you've chosen the right repayment plan, sign up for Direct Debit. It's the easiest way to make your student loan payments on time, every month.
Something else to consider—loan consolidation!
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