Home » Students & Parents » Repaying your Loans » Federal Loans

Federal Loans

Loan Repayment
 
A Federal Stafford loan generally enters repayment at the end of the grace period.   A six month grace period is provided to borrowers after graduation, withdrawal or less than half-time enrollment. 
 
There are different types of repayment options.   If the borrower does not select an income sensitive or graduated payment plan within 45 days of the start of repayment, the repayment plan will automatically become a standard repayment plan.

Maximum repayment period is 10 years (excludes any period of authorized deferment or forbearance).

Standard Repayment
  • Installment amount will be the same each month.
    However, the installment amount may be adjusted annually to reflect annual changes in the interest rate.
  • Maximum repayment period is 10 years (excludes any period of authorized deferment or forbearance).
Graduated Repayment
  • Monthly payment amount gradually increases over the repayment period (no single installment is more than three times greater than any other installment: three-times rule).
  • Payment is not based on borrower’s income.
  • Maximum repayment period is 10 years (excludes any period of authorized deferment or forbearance).
Income-Based Repayment
  • Monthly payment based on a percentage of your discretionary income
  • After 25 years of qualifying payments, any remaining balance on the loan will be forgiven, although you may have to pay taxes on the amount forgiven
  • To determine your estimated monthly payment visit Mapping Your Future.
  • The IBR is not available for repayment of Federal PLUS, consolidation loans that include PLUS Loans, or private loans
Income Sensitive Repayment
  • Monthly payment amount based on borrower’s expected total monthly gross income (does not include spouse’s income).
  • Lender will determine whether the borrower qualifies.  Annual adjustment may be made to borrower’s repayment schedule.
  • Maximum repayment period is 10 years (excludes any period of authorized deferment or forbearance). Lender must grant forbearance if decreased installments would result in loan not being repaid within the maximum repayment period. 
Extended Repayment
  • Available to new borrowers on or after October 7, 1998.
  • Outstanding balance or principal and interest in FFELP loans more than $30,000.
  • Standard or graduated installments not to exceed 25 years.

^ Top