Repayment ScheduleThere are a number of repayment schedule options available to you. With the help of your lender, you can set up the payment plan that best fits your situation. These options include:
- Standard / Level payments
- Graduated payments
- Income Sensitive payments
- Income Based payments
- Extended repayment schedule payments
- Federal student loan consolidation
NOTE: The faster you pay down the principal balance on your student loan(s) the less interest you pay over the life of the loan(s). While lower payments may be helpful and prevent default, we highly recommend increasing your payment amount as soon as possible. Even paying $5 to $10 more per month can help considerably! Click the chart to the right for more information!
Use a student loan repayment calculator to estimate your monthly standard payment.
poverty levels for your family size.
Monthly payment amounts can be less than the monthly interest accrual. If the monthly payment amount is not enough to cover the interest accrual, the Department of Education will pay the remaining interest for the first three years on your subsidized Stafford loans only.
To initially qualify for the IBR plan, you must have a partial financial hardship. You are considered to have a partial financial hardship if the annual amount due on all of your eligible loans exceeds 15% of the difference between your AGI as shown on your most recent federal income tax return and 150% of the poverty line amount for your family size. The annual amount due is calculated as of the time you initially entered repayment using a standard repayment plan with a 10-year repayment period.
Eligibility for the IBR must be re-established each year. When applying for the IBR you may be asked to complete an authorization form (4506-T) to allow your lender to verify your AGI with the IRS or supply a copy of your latest federal tax return form.
If your AGI is not available from the IRS or does not reasonably reflect your current income (i.e. you’ve had a significant change in your income), you may be able to provide alternate documentation of your income that will be used to determine your IBR plan eligibility and payment amount.
If you are married filing jointly your spouse’s income will be included in determining your eligibility and IBR payment amount.
After 25 years and 300 qualifying payments, any balance remaining on your loans will be forgiven (amount forgiven may be taxable).
Defaulted and Parent PLUS loans are not eligible for the IBR plan. Consolidation loans that include Parent PLUS loans are also ineligible for IBR.
Use an IBR calculator to determine your eligibility for IBR and estimate your monthly payment amount.
To apply for IBR you must complete an Income-Based Repayment Plan Application.
Use a student loan repayment calculator to estimate your monthly payment under an extended level payment plan.
Learn more about loan conslidation.
Remember lower payments are a great way to prevent default, but they may cost you more over the life of the loan. It is a good idea to lower your monthly payment to a manageable amount but as soon as you can afford to make bigger payments, do so!