Repayment Plans

As a student or parent borrower under the Federal Family Education Loan Program (FFLEP), you have four repayment plans available; standard, graduated, income-sensitive, and extended.

With a Standard Repayment Plan, you pay the same amount every month for the duration of your repayment period. It is the least expensive plan in the long run. With a Standard Repayment Plan, your payments are the same each month.

This plan has a term of ten years that may be extended up to 25 years depending on the amount borrowed. The payment amount is determined by the total amount of Federal Loans borrowed, but cannot be less than $50 per month.

Loans are initially set up for a Standard Repayment Plan. We recommend you continue with this plan if you are able to make your scheduled monthly payments. The total amount you would repay under this option is generally less than the total amount you would repay under an Income-Sensitive Plan or Graduated Repayment Plan.

A Graduated Repayment Plan offers lower, more affordable payments for the first two years of loan repayment. After the first two years of repayment, payments gradually increase over the life of the loan. Your loan is repaid in the same time frame as a Standard Repayment Plan. Total interest costs are slightly higher than the Standard Repayment Plan.

This plan begins with lower payments that gradually increase over the life of the loan. The payment amount is determined by the total amount of Federal Loans borrowed, but cannot be less than $50 per month.

This plan can be especially helpful when you're first starting out after college. However, if you have only been paying interest under this plan, remember that you will have fewer years to fully repay the principal and interest during the remaining years of repayment.

With an Income-Sensitive Repayment Plan your monthly payment increases on an annual basis with your estimated income. This is the most flexible plan, but it can be the most expensive in the long run, and you must reapply annually.

If you choose this option, you will need to send proof of your current gross monthly income from all sources, (i.e., copies of pay stubs or checks) for income verification.

Your monthly payment will be the amount of interest due on your loan for the month, or 4 percent of your gross monthly income, whichever is greater. An Income-Sensitive Plan is in effect for 12 months at a time. We will notify you when your Income-Sensitive Plan period is coming to an end. At that time, you should review your repayment options and choose the plan that best suits your situation.

An Extended Repayment Plan is available to new FFELP borrowers who received their first loan on or after October 7, 1998 and who have FFELP loans totaling more than $30,000. Under the Extended Repayment Plan, your payments are fixed or graduated over a period of up to 25 years.

For more information, or to enroll in an Income-Sensitive Plan or Graduated Repayment Plan, contact customer service at 1.800.370.3472, Monday through Friday, 8 a.m. to 5 p.m. We will review your options with you and help establish a repayment schedule that meets your individual needs.