Repayment Plans


Re·pay v.tr..
To pay back: repaid a debt.

De·fer·ment n.
A deferment allows you to postpone your scheduled monthly payments if you meet specific requirements.

for·bear·ance n.
If you do not meet the criteria to qualify for a deferment, you may be allowed to temporarily stop making payments with forbearance.
 
Below is a summary of available payment plans. The Direct Loan Servicing Center will provide you with more detailed information to guide you while deciding which plan is right for you.

Standard Repayment

  • Fixed payment of at least $50 a month.
  • Repayment term cannot exceed 10 years, excluding in-school, grace, deferment or forbearance periods.

Graduated Repayment

  • Payments are smaller at the beginning of repayment and gradually increase over time.
  • No single payment may be more than three times greater than any other payment.
  • Repayment term is generally 10 years.

Income-Sensitive Repayment

  • Payments are adjusted annually based on your monthly gross income.
  • Payment amount must cover at least the interest due.
  • Repayment term varies.

Income-Based Repayment

  • You must demonstrate partial financial hardship to qualify.
  • Payments are 15 percent of your discretionary income.
  • Payments are adjusted annually based on your adjusted gross income and family size.

Loan Consolidation

  • Must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment, or default status.
  • Loans that are in an in-school status cannot be included in a Direct Consilidation Loan.
  • Borrowers can consolidate most defaulted education loans if they make satisfactory repayment arrangements with their current loan servicer(s) or agree to repay their new Direct Consolidation Loan under the Income Contingent or Income-Based Repayment Plan.