Repaying Your Student Loan

Ways to Repay Your Loan

Standard Repayment Plan
Income-Based Repayment Plan
Graduated Repayment Plan
Extended Repayment Plan
Income-Sensitive Repayment Plan

All of your loans must be repaid, unless you qualify for loan discharge or forgiveness. You may be charged an origination and a federal default fee for each loan. The amount of these fees will be deducted proportionately from each disbursement.

The repayment period for your Stafford loans begins the day after your grace period ends. Your first payment will be due within 60 days after your grace period ends. If you obtained PLUS loans, the repayment period begins upon final disbursement of each loan. Generally, your first payment will be due within 60 days. 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 an income-based, graduated or income-sensitive repayment plan. Generally, your minimum annual payment will never be less than the amount of interest due and payable.

Your principal repayment period for each loan may not exceed 10 years (except under an income-based 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 (for the following repayment plans, the time limits shown do not include periods of deferment and forbearance). You may change repayment plans at least once a year; please contact your loan holder for more information.

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

Visit TG's Adventures In Education Web site to estimate your monthly payment amount using the standard repayment calculator.

Income-Based Repayment (IBR) Plan

Available for Stafford, Grad PLUS, and certain Consolidation loans
PLUS loans borrowed on behalf of a dependent student are not eligible for the Income-Based Repayment plan
Monthly payments based on borrower's income and family size, and balance on eligible loans
Repayment term may be greater than ten 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

Visit TG's Income-Based Repayment Plan information page for the IBR calculator and additional details.

Graduated Repayment Plan

Monthly payments are smaller 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

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

Contact your loan holder to determine your monthly payment under this repayment plan.

Income-Sensitive Repayment Plan

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

Contact your loan holder to determine your monthly payment under this repayment plan.

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-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 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) 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 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.