Repaying Your Student Loan

Ways to Repay Your Loan

Standard Repayment Plan
Income-Based Repayment Plan
Graduated Repayment Plan
Income-Contingent Repayment Plan

Pay As You Earn Repayment Plan

Income-Sensitive Repayment Plan
Extended Repayment Plan

A federal student loan is an obligation that must be repaid. Under certain specific circumstances, your loan may be discharged or forgiven, but otherwise, it must be paid in full.

When you borrowed your student loan, you were charged an origination fee. The amount of this fee was deducted proportionately from each disbursement. You are required to repay the full amount borrowed, before the fee was deducted.

The repayment period for your student loan(s) (either a Stafford loan under the Federal Family Education Loan Program [FFELP] or a Direct loan under the Federal Direct Loan Program [FLDP]) begins the day after your six-month grace period ends, with your first payment is due 60 days later. Your loan holder will notify you of the date your first payment is due.

If you obtained a student PLUS loan(s), the repayment period begins upon final disbursement of the loan. However, your loan will be placed automatically into deferment while you are enrolled at least half time and during the six months after you leave school, with your first payment due 60 days later. Your loan holder will notify you of the date your first payment is due.

If you obtained a parent PLUS loan(s), the repayment period begins upon final disbursement of each loan. Generally, your first payment is due within 60 days of the final disbursement, unless you choose to delay making payments while your dependent student is enrolled in school at least half time. Your loan holder will notify you of the date your first payment is due.

You must make payments on your loans. Billing information is sent to you as a convenience, and you are obligated to make your payments even if you do not receive notification from the loan holder. The minimum monthly payment required on all your loans will be a fixed amount of at least $50, unless otherwise agreed upon by the loan holder, except as provided in an income-driven repayment plan (Income-Based, income-contingent, Pay As You Earn), graduated, or income-sensitive repayment plan. Generally, your minimum monthly payment will never be less than the amount of interest due and payable.

Your repayment period for each loan may not exceed 10 years (except under an Income-Based, income-contingent, Pay As You Earn, or 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 (note that for these plans, the time limits shown do not include periods of deferment and forbearance). You may change repayment plans at least once per year.

For more information, contact your loan holder or servicer.

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 or interest accrued, whichever is larger (payment is based on total loan amount)
Ten-year repayment term

For more information, visit the College Loan Calculator at TG's Adventures In Education website.

Income-Based Repayment (IBR) Plan

Available for Stafford, Direct, Grad PLUS, student PLUS, and certain Consolidation loans
Parent PLUS loans, consolidation loans that included a parent PLUS loan, nonfederal loans, and defaulted loans are not eligible for the Income-Based Repayment plan
Monthly payments are based on borrower's income and family size, and balance on eligible loans
Repayment term is a maximum of 25 years
Total amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan, but any outstanding principal and interest still owed after 25 years of qualifying payments will be forgiven
Eligibility must be re-evaluated every year

For more information, visit Income-Based Repayment or contact your loan holder or servicer.

Graduated Repayment Plan

Monthly payments are reduced at the beginning of the repayment period and gradually increase over the repayment period
Ten-year repayment term
No single payment will be more than three times greater than any other payment
Total amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan

For more information, contact your loan holder or servicer.

Income-Contingent Repayment Plan

Available to Federal Direct Loan Program (FDLP) borrowers only
Monthly payment is adjusted annually, based on the total amount of your Direct loans, your family size, and your adjusted gross income
Must reapply annually
Total amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan, but any outstanding principal and interest still owed after 25 years of qualifying payments will be forgiven

For more information, contact your federal loan servicer.

Pay As You Earn Repayment Plan

Available to certain Federal Direct Loan Program (FDLP) borrowers only. To qualify:
- You must have had no outstanding balance on an FDLP or FFELP loan as of October 1, 2007, or had no outstanding balance on an FDLP or FFELP loan when you received a new loan on or after October 1, 2007; AND
- You must have received a disbursement of an FDLP loan on or after October 1, 2011.
Monthly payment is adjusted annually, based on the total amount of your FDLP loans, your family size, and your adjusted gross income
Must reapply annually
Total amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan, but any outstanding principal and interest still owed after 20 years of qualifying payments will be forgiven

For more information, contact your federal loan servicer.

Income-Sensitive Repayment Plan

Available to Federal Family Education Loan Program (FFELP) borrowers only
Monthly payment varies according to gross monthly income
Payment includes at least monthly accruing interest
Must reapply annually
Total amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan

For more information, contact your loan holder or servicer.

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 amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan

For more information, contact your loan holder or servicer.

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

If you do not choose an Income-Based, income-sensitive, graduated, or extended repayment plan within 45 days after notification of your repayment choices, or if you choose an Income-Based or income-sensitive repayment plan but do not provide the required documentation within the loan holder-specified time frame, your loan holder will require that you repay the loan under a standard repayment plan. You may change the repayment plan on your loan(s) at least once a year.

There will be no penalty for prepaying any portion of your loans. With the exception of payments made under the Income-Based Repayment plan, 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. Payments made under the Income-Based Repayment plan will be applied in the following order: interest, collection costs, late charges, then principal.

If you fail to make any part of a monthly 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 payment.

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