Your Repayment Options

For Stafford borrowers repayment begins 6 months (grace period) after you leave school or drop below half-time enrollment status. For PLUS borrowers repayment begins within 60 days after the final disbursement of the loan. PLUS loans do not have a grace period.

If at any time you are unable to make payments, contact your lender to review your options. You may be eligible for a deferment or forbearance of your student loan payments, which will allow you to postpone payments and avoid negative credit bureau reportings.

Standard Payment Plan - You pay the same amount each month for up to 10 years towards the principal and interest of the loan. The minimum payment amount is at least $50 per month.

Graduated Payment Plan - You begin repaying your loan with a lower payment and increase that amount after two to four years. The minimum payment amount is at least $50 per month.

Income-Sensitive Payment Plan - You may repay your loan based on your gross monthly income. You must show income documentation annually and additional documentation may be required. Your lender will then determine your loan payment based on federal guidelines.

Extended Payment Plan - You may take up to 25 years to repay your loan if you received your first loan after October 7, 1998 and your combined loans totals $30,000 or more. By extending your loan repayment period, you can significantly reduce your monthly payment.

Is Consolidation Right For You? - You may reduce your monthly payment amount by consolidating your student loans into a single, fixed interest rate loan called the Federal Consolidation loan.