Repayment Options
Below are the repayment options available to you. Talk to your loan holder about which option is best for you.
Tips:

• Payments are expected each month.
• You may prepay your loan at any time without penalty. Prepayment may substantially reduce the amount of interest you pay.
• If you ever have difficulty repaying your loan, contact your servicer immediately, as you have options (including deferment and forbearance).

Standard for Direct Subsidized, Direct Unsubsidized, Federal Stafford (subsidized or unsubsidized), Direct PLUS for graduate and professional students, Federal PLUS for graduate and professional students, Direct Consolidation, and Federal Consolidation Loans

• Minimum payment is $50, but might be higher depending on your loan balance (use the standard repayment calculator to estimate)
• Monthly payment can change if the loan's interest rate changes
• Repayment term is 10 years

Graduated for Direct Subsidized, Direct Unsubsidized, Federal Stafford (subsidized or unsubsidized), Direct PLUS for graduate and professional students, Federal PLUS for graduate and professional students, Direct Consolidation, and Federal Consolidation Loans

• Payments are graduated over time; you will begin with a lower payment, which might increase over the repayment period
• More interest accrues over the life of the loan because the principal balance decreases at a slower rate
• Repayment term is 10 years

Income-contingent for Direct Subsidized, Direct Unsubsidized, and Direct PLUS Loans

• Payments are adjusted based on your gross monthly income; however, payments cannot be lower than your monthly interest amount
• Payment amount and eligibility verified annually
• More interest accrues over the life of the loan because the principal balance decreases at a slower rate
• Repayment term is up to 15 years
• Outstanding balance will be forgiven after 25 years; the amount forgiven may be taxable

Income-sensitive for Federal Stafford Loans (subsidized or unsubsidized) and Federal PLUS Loans

• Payments are adjusted based on your gross monthly income; however, payments cannot be lower than your monthly interest amount
• Payment amount and eligibility verified annually
• More interest accrues over the life of the loan because the principal balance decreases at a slower rate
• Repayment term is up to 15 years

Income-based for Direct Subsidized, Direct Unsubsidized, Federal Stafford (subsidized or unsubsidized), Direct PLUS for graduate and professional students, Federal PLUS for graduate and professional students, Direct Consolidation (which don’t include any parent PLUS Loans), and Federal Consolidation Loans (which don’t include any parent PLUS Loans)

• Payment is an adjusted amount based on income and family size with payment not more than 15 percent of the amount by which your adjusted gross income exceeds 150 percent of the poverty line for your family size (use the income-based repayment calculator to estimate)
• Payment amount and eligibility verified annually
• If monthly payment amount is not enough to pay accrued interest on a Direct Subsidized Loan / subsidized Federal Stafford Loan, the Department of Education will pay the remaining interest for a period up to three years
• More interest accrues over the life of the loan because the principal balance decreases at a slower rate
• Outstanding balance will be forgiven after 25 years; the amount forgiven may be taxable
• Available for Stafford, Grad PLUS and Federal Consolidation loans that do not include Parent PLUS loans

Extended for Direct Subsidized, Direct Unsubsidized, Federal Stafford (subsidized or unsubsidized), Direct PLUS for graduate and professional students, Federal PLUS for graduate and professional students, Direct Consolidation, and Federal Consolidation Loans

• Available to new borrowers on or after October 7, 1998, who have a minimum balance of $30,000 in student loans
• You can select a standard or graduated repayment plan
• More interest accrues over the life of the loan because the principal balance decreases at a slower rate
• Repayment term is 25 years