• Standard Repayment Plan
• Graduated Repayment Plan
• Extended Repayment Plan
• Income-Sensitive Repayment Plan
• Consolidation

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All of your loans must be repaid. You may be charged an origination and a guarantee fee for each loan. The amount of these fees will be deducted proportionately from each disbursement.

The repayment period for your loans begins the day after your 6-month grace period ends. Your first payment will be due within 60 days after your grace period ends. Your lender will notify you of the date your first payment is due.

You must make payments on your loans even if you do not receive a bill or repayment notice. Billing information is sent to you as a convenience, and you are obligated to make payments even if you do not receive any notice. The minimum annual payment required on all your FFELP loans will not, unless the lender otherwise agrees, be less than $600, except as provided in a graduated or income-sensitive repayment plan. Notwithstanding the preceding sentence, your minimum annual payment will never be less than the amount of interest due and payable.

Your principal repayment period for each loan generally lasts 5 years but may not exceed 10 years (except under an extended repayment plan) from the day after the grace period ends. You will be given the opportunity to choose one of the following repayment plans (for the following repayment plans, the time limits shown do not include periods of deferment and forbearance):

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Standard Repayment Plan

• Lowest total interest costs over life of the loan
• Regular payments of both principal and interest are due monthly, excluding periods of deferment and forbearance
• Minimum monthly payment is $50 (payment is based on total loan amount)
• Ten-year repayment term

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Graduated Repayment Plan

• Monthly payments are smaller at the beginning of the repayment period and become larger later on in the period
• Ten-year repayment term
• No single payment will be more than three times greater than any other payment
• Total interest costs will be higher over the life of the loan than with the standard repayment plan, although monthly payment amount may be lower

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Extended Repayment Plan

• Lengthens repayment term up to 25 years
• Must have a minimum loan balance of $30,000 to qualify
• Payments can be either fixed or graduated
• Total interest costs will be higher over the life of the loan than with the standard repayment plan, although payment amount may be lower

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Income-Sensitive Repayment Plan

• Monthly payment varies according to gross monthly income
• Payment includes at least monthly accruing interest
• Must reapply annually
• Total interest costs will be higher over the life of the loan than with the standard repayment plan, although monthly payment amount may be lower

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Consolidation

• Allows borrowers to consolidate one or more federal education loans into a new loan
• Simplifies repayment into one monthly payment
• May extend repayment period
• Total interest costs will be higher over the life of the loan than with the standard repayment plan, although payment amount may be lower

For more information about consolidations, visit TG's Consolidation Station^SM.

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Under each plan, the number or amount of the payments may need to be adjusted to reflect annual changes in the variable interest rate, if applicable.

These repayment plans will be explained in more detail during the required exit counseling session provided by your school. If you do not choose an income-sensitive, graduated, or extended repayment plan within 45 days after notification of your repayment choices, or if you choose an income-sensitive repayment plan but do not provide the required documentation within the lender-specified time frame, your lender will require that you repay the loan under a standard repayment plan. You may change the repayment plan on your loan(s) once a year.

There will be no penalty for prepaying any portion of your loans. All payments and prepayments may be applied in the following order: late charges, fees, and collection costs first, outstanding interest second, and outstanding principal last.

If you fail to make any part of an installment payment within 15 days after it becomes due, you may owe a late charge. This charge may not exceed six cents for each dollar of each late installment.

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For more information, contact:

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