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Loan Repayment

As a student loan borrower, you are responsible for knowing the total amount of federal loans you have borrowed. A summary of your federal loan debt is available via the National Student Loan Data System (NSLDS) at www.nslds.ed.gov.

Students must keep in mind that they are legally responsible for fully repaying all of their loans according to the terms outlined in their Master Promissory Note. Students are required to repay their loans regardless of whether they complete their education, are able to find employment, or are satisfied with their education. Students should make every reasonable attempt to minimize the amount that they borrow by borrowing only what they need and what they can afford to repay.

Repayment Estimator is a tool that William D. Ford Federal Direct Loan (Direct Loan) and Federal Family Education Loan (FFEL) program borrowers can use to obtain preliminary repayment plan eligibility information and estimated repayment amounts. This tool offers borrowers the opportunity to obtain preliminary repayment information across all of the repayment plans. Its advantage over repayment plan-specific calculators is that it provides side-by-side results for all plans and information about the total cost of a loan over time. The new repayment estimator is available for borrower use on the www.studentloans.gov.

Repayment Plan 

Eligible Loans 

Minimum Requirements

Monthly Payment/Duration  

Standard Repayment

Direct Loans

FFEL

PLUS loans

All borrowers qualify

Payments are a fixed amount, at least $50 per month

Up to 10 years

Graduated Repayment

Direct Loans

FFEL

PLUS loans

All borrowers can request

Payments are lower and then increase, usually every two years

Up to 10 years

Extended Repayment

Direct Loans

FFEL

PLUS loans

Must have $30,000 in outstanding Direct or FFEL loans

Only for loans taken after Oct, 1998

Payments may be fixed or graduated

Up to 25 years

Income-Based Repayment (IBR)

Direct Loans

FFEL

Graduate PLUS

Consolidation Loans

Must have financial hardship

Maximum payments are 15 percent of discretionary income, the difference between adjusted gross income and 150 percent of the poverty guideline.

Up to 25 years

Pay As You Earn Repayment

Direct Loans

Graduate PLUS

Consolidation Loans

Must have financial hardship

Must have a loan disbursed after Oct. 1, 2011

Maximum payments are 10 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline

Up to 20 years

Income-Contingent Repayment

Direct Loans

Graduate PLUS

Consolidation Loans

N/A

 

Payments are calculated based on adjusted gross income, family size, and the total amount of Direct Loans.

Up to 25 years

Income-Sensitive Repayment

FFEL Loans only

N/A

Monthly payment is based on annual income

Up to 10 years