Generally, borrowers have from 10 to 25 years to repay his/her loans, depending on the repayment plan chosen. Monthly payment amounts will be based on the amount borrowed and the repayment plan selected.
- Standard Repayment Plan—Fixed monthly payments for up to 10 years.
- Extended fixed repayment or extended graduated payment plan—You will make fixed or graduated monthly payments and repay your loan in full over a period of time, not to exceed 25 years (not including periods of deferment or forbearance).
- Graduated Repayment Plan— Payments start off lower at first and then gradually increase, usually every 2 years. The loan must be repaid within 10 years.
- Income Contingent Repayment Plan— the monthly payment is adjusted each year based on your annual income (and your spouse’s income, if you’re married), your family size, and the total amount of your Direct Loans. After 25 years, any unpaid loan amount will be forgiven.
- Income-Based Repayment Plan — the required monthly payment amount will be based on the former students’ income during any period when he/she has a partial financial hardship. The monthly payment amount may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If he/she meets certain requirements over a specified period of time, he/she may qualify for cancellation of any outstanding balance.
If a former student doesn’t choose a repayment plan, the Standard Repayment Plan is used, but he/she can change plans at any time. There’s no penalty if he/she makes payments before they are due or pay more than the amount due each month.
You may use the Loan Payment Calculator to estimate your monthly loan payments. http://www.finaid.org/calculators/loanpayments.phtml
