Federal Direct Loans
Repayment
Repayment begins 6 months after graduation, withdrawal or enrollment less than half-time. Students may select from one of four repayment options:
- Standard Repayment Plan
Fixed annual repayment amount.- Paid over a fixed period of time.
- Extended Repayment Plan
- Fixed annual repayment amount.
- Paid over an extended period of time.
- Must repay minimum amount as determined by the US Department of Education
- Graduated Repayment Plan
- Annual repayment amount.
- Established at two or more graduate levels.
- Paid over a fixed or extended period of time.
- Scheduled payments shall not be less than 50%, or more than 150% of what the amortized payment on the amount owed would be if the loan were repaid under the standard repayment plan.
- Income Contingent Repayment Plan
- Each year the monthly payment is based on your annual income and amount borrowed.
- Maximum repayment period is 25 years.
- Income-Based Repayment Plan (partial financial hardship)
- Annual amount due on a 10-year repayment plan limited to 15% of the amount
- by which the Adjusted Gross Income exceeds 150% of the poverty line based on family size.
- The annual amount due will be divided by 12 to calculate monthly payments.
- May change repayment at any time.
- Must reapply every year.
The U.S. Department of Education will provide the borrower with an opportunity to select a repayment plan. If the borrower does not select a plan, the department will provide the borrower assigned the standard repayment plan. The U.S. Department of Education will issue a repayment schedule that provides payment amounts and due dates. The Education Department may grant the borrower forbearance to eliminate a delinquency. The borrower may prepay all or any part of the unpaid balance on the loans at any time without penalty.
For additional information on understanding loans or repayment issues, visit The Student Loan Borrower Assistance website – a resource for borrowers, their families and advocates.
< Back
