Repaying Your Student Loan

Comparison of Repayment Plans

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	Income-Based	Graduated	Income-Sensitive	Extended	Consolidation
Monthly Payment	$173	$170	Yr. 1: $85 Yr. 2-10: $203	Yr. 1: $100 Yr. 2: $170	n/a	$133
Term	10 years	10 years	10 years	11 years	n/a	15 years
Total Interest	$5,714	$5,722	$6,530	$6,658	n/a	$8,967
Total Paid	$20,714	$20,722	$21,530	$21,658	n/a	$23,967

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

	Standard	Income-Based	Graduated	Income-Sensitive	Extended	Consolidation
Monthly Payment	$345	$170	Yr. 1: $170 Yr. 2-10: $406	Yr. 1: $170 Yr. 2-11: $345	$208	$229
Term	10 years	18 years	10 years	11 years	25 years	20 years
Total Interest	$11,429	$25,847	$13,059	$13,469	$32,466	$24,960
Total Paid	$41,429	$55,847	$43,059	$43,469	$62,466	$54,960

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

	Standard	Income-Based	Graduated	Income-Sensitive	Extended	Consolidation
Monthly Payment	$690	$170	Yr. 1: $340 Yr. 2-10: $812	Yr. 1: $340 Yr. 2-11: $690	$416	$391
Term	10 years	25 years*	10 years	11 years	25 years	30 years
Total Interest	$22,858	$81,981	$26,118	$26,938	$64,933	$80,816
Total Paid	$82,858	$98,564	$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. The Income-Based Plan is calculated based on an annual salary of $30,000 and a family size of one living in the contiguous U.S. Monthly payment amounts under the Income-Based Plan may change annually based upon the borrower's income and family size.

* Any remaining balance, including interest, is forgiven after 25 years of payments.