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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.

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

  Standard Graduated Extended Income-
Based*
(IBR)
Income-
Sensitive**
(FFELP only)
Income-
Contingent**
(FDLP only)
Pay As
You Earn****
(FDLP only)
Monthly
Payment
$173 Yrs. 1-2: $119
Yrs. 3-4: $144
Loan balance
must be greater
than $30,000
Min: $166
Max: $173
Yr. 1: $100
Yrs. 2-10: $184
Yr. 1: $124
Max: $133
Yr. 1: $110
Max: $173
Term 10 years 10 years n/a 10 years 10 years 16 years 20 years
Total Interest $5,714 $6,833 n/a $5,792 $6,048 $10,183 $8,808
Total Paid $20,714 $21,833 n/a $20,792 $21,048 $25,183 $23,808

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

  Standard Graduated Extended Income-
Based*
(IBR)
Income-
Sensitive**
(FFELP only)
Income-
Contingent**
(FDLP only)
Pay As
You Earn****
(FDLP only)
Monthly
Payment
$518 Yrs. 1-2: $356
Yrs. 3-4: $432
$312 Yr. 1: $166
Max: $518
Yr. 1: $100
Yrs. 2-10: $582
Yr. 1: $320
Max: $400
Yr. 1: $110
Max: $282
Term 10 years 10 years 25 years 25 years 10 years 17 years 20 years
Total Interest $17,143 $20,500 $48,701 $65,854 $19,061 $33,505 $61,170
Total Paid $62,143 $65,500 $93,701 $95,564 $64,061 $78,505 $44,313

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

  Standard Graduated Extended Income-
Based*
(IBR)
Income-
Sensitive**
(FFELP only)
Income-
Contingent**
(FDLP only)
Pay As
You Earn****
(FDLP only)
Monthly
Payment
$863 Yrs. 1-2: $593
Yrs. 3-4: $720
$521 Yr. 1: $166
Max: $536
Yr. 1: $100
Yrs. 2-10: $980
Yr. 1: $320
Max: $689
Yr. 1: $110
Max: $282
Term 10 years 10 years 25 years 25 years 10 years 25 years 20 years
Total Interest $28,572 $34,167 $81,165 $127,010 $32,073 $117,349 $102,000
Total Paid $103,572 $109,167 $156,165 $95,775 $107,073 $160,116 $44,313


* 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. Any remaining balance, including interest, is forgiven after 25 years of qualifying payments under this plan. This plan is offered to student loan borrowers of the FFELP and FDLP.

Also, any Stafford, Direct, Grad PLUS, Direct Student PLUS, or Consolidation loan made under either the FDLP or FFELP is eligible for repayment under IBR, EXCEPT loans that are currently in default, parent PLUS and Direct PLUS loans, or Consolidation loans that repaid a parent PLUS or Direct PLUS loan.

** 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 student loan borrowers of the Federal Family Education Loan Program (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 student loan borrowers of the Federal Direct Loan Program (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. Any remaining balance, including interest, is forgiven after 20 years of qualifying payments under this plan. This plan is only offered to certain student loan borrowers of the FDLP.

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



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