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Repaying Your Student Loan

 

Comparison of Repayment Plans


After learning about the different types of repayment plans, it's useful to see your options side-by-side. The following charts compare student loan repayment plans to help you visualize the difference in repayment terms, interest accrued, and the total amount paid. Consider all of these factors when choosing the repayment plan that's right for your particular financial situation. Please keep in mind that not all loan types are eligible for all repayment plans.

Example 1: Loan balance = $15,000; interest rate = 6.8%

  Standard Graduated Extended Income-
Based*
Income-
Sensitive**
(FFELP only)
Income-
Contingent***
(FDLP only)
Pay As
You Earn****
(FDLP only)
Monthly
Payment
$173 Min: $100
Max: $299
Loan balance
must be greater
than $30,000
Yr. 1: $156
Max: $173
Yr. 1: $100
Yrs. 2-10: $184
Yr. 1: $115
Max: $133
Yr. 1: $102
Max: $173
Term 10 years 10 years n/a 10 years 10 years 17 years 13 years
Total Interest $5,714 $7,290 n/a $5,907 $6,048 $10,439 $8,345
Total Paid $20,714 $22,290 n/a $20,907 $21,048 $25,439 $23,345
Forgiveness n/a n/a n/a $0 n/a $0 $0

Example 2: Loan balance = $45,000; interest rate = 6.8%

  Standard Graduated Extended Income-
Based*
Income-
Sensitive**
(FFELP only)
Income-
Contingent***
(FDLP only)
Pay As
You Earn****
(FDLP only)
Monthly
Payment
$518 Min: $299
Max: $896
$312 Yr. 1: $156
Max: $518
Yr. 1: $100
Yrs. 2-10: $582
Yr. 1: $306
Max: $429
Yr. 1: $104
Max: $411
Term 10 years 10 years 25 years 23 years 10 years 17 years 20 years
Total Interest $17,143 $21,870 $48,700 $57,869 $19,061 $32,988 $55,994
Total Paid $62,143 $66,870 $93,700 $102,896 $64,061 $77,988 $55,994
Forgiveness n/a n/a n/a $0 n/a $0 $50,206

Example 3: Loan balance = $75,000; interest rate = 6.8%

  Standard Graduated Extended Income-
Based*
Income-
Sensitive**
(FFELP only)
Income-
Contingent***
(FDLP only)
Pay As
You Earn****
(FDLP only)
Monthly
Payment
$863 Min: $498
Max: $1,494
$521 Yr. 1: $156
Max: $838
Yr. 1: $100
Yrs. 2-10: $980
Yr. 1: $306
Max: $822
Yr. 1: $104
Max: $411
Term 10 years 10 years 25 years 25 years 10 years 24 years 20 years
Total Interest $28,572 $36,450 $81,165 $127,494 $32,073 $95,510 $55,994
Total Paid $103,572 $111,450 $156,166 $128,640 $107,073 $176,278 $55,994
Forgiveness n/a n/a n/a $73,854 n/a $0 $121,006


* The Income-Based Repayment (IBR) plan example is calculated based on an adjusted gross income of $30,000 and a family size of one living in the contiguous United States. Monthly payment amounts under the IBR plan may change annually based upon the borrower's adjusted gross income and family size as determined by the U.S. Department of Health & Human Services. Any remaining balance, including interest, is forgiven after 25 years of qualifying payments under this plan for borrowers with loans disbursed prior to July 1st, 2014 and 20 years for borrowers with only new loans disbursed on or after July 1st, 2014. This plan is offered to eligible student loan borrowers of the Federal Family Education Loan Program (FFELP) and Federal Direct Loan Program (FDLP).

** The Income-Sensitive Repayment plan is calculated based on an annual salary of $30,000 and 4 percent monthly adjusted 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 his or her loan payment. This plan is only offered to eligible borrowers of the FFELP.

*** The Income-Contingent Repayment plan example is calculated based on an adjusted gross income of $30,000 and a family size of one living in the contiguous United States. This repayment amount will be recalculated annually and is subject to change based on the poverty guidelines per family size as determined by the U.S. Department of Health & Human Services. This plan has a maximum term of 25 years and is only offered to eligible student loan borrowers of the FDLP.

**** The Pay As You Earn Repayment plan example is calculated based on an adjusted gross income of $30,000 and a family size of one living in the contiguous United States. Monthly payment amounts under the Pay As You Earn plan may change annually based upon the borrower's adjusted gross income and family size as determined by the U.S. Department of Health & Human Services. Any remaining balance, including interest, is forgiven after 20 years of qualifying payments under this plan. This plan is only offered to eligible student loan borrowers of the FDLP.

Calculator sources: www.finaid.org; www.studentaid.ed.gov



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