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Comparison of Repayment Plans

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When choosing a repayment plan, consider the total interest accrued and the total amount paid under each option.


Example 1: Loan Balance = $15,000, Interest Rate = 6.8%

  Standard Graduated Income-Sensitive Extended Consolidation
Monthly Payment $173 Yr. 1:
$85
Yr. 2-10:
$203		 Yr. 1:
$100
Yr. 2:
$170		 n/a $133
Term 10 years 10 years 11 years n/a 15 years
Total Interest $5,714 $6,530 $6,658 n/a $8,967
Total Paid $20,714 $21,530 $21,658 n/a $23,967



Example 2: Loan Balance = $30,000, Interest Rate = 6.8%

  Standard Graduated Income-Sensitive Extended Consolidation
Monthly Payment $345 Yr. 1:
$170
Yr. 2-10:
$406		 Yr. 1:
$170
Yr. 2-11:
$345		 $208 $229
Term 10 years 10 years 11 years 25 years 20 years
Total Interest $11,429 $13,059 $13,469 $32,466 $24,960
Total Paid $41,429 $43,059 $43,469 $62,466 $54,960



Example 3: Loan Balance = $60,000, Interest Rate = 6.8%

  Standard Graduated Income-Sensitive Extended Consolidation
Monthly Payment $690 Yr. 1:
$340
Yr. 2-10:
$812		 Yr. 1:
$340
Yr. 2-11:
$690		 $416 $391
Term 10 years 10 years 11 years 25 years 30 years
Total Interest $22,858 $26,118 $26,938 $64,933 $80,816
Total Paid $82,858 $86,118 $86,938 $124,933 $140,816


Note: The Income-Sensitive Plan is calculated based on an annual salary of $30,000 and 4% monthly gross income allocation to the loan payment. Total interest paid over the life of the loan and the term will vary depending on the percentage of income that the borrower chooses to allocate each year to its loan payment.

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TG Default Prevention
(800) 338-4752
prevent.default@tgslc.org

 

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