Diversity Grant
Federal Loan Repayment Options
There are a variety of repayment plan options to help you manage your federal student loan debt. The repayment plans outlined below are for the Direct Loan program. If you also have loans through the Federal Family Education Loan Program all of the information below may not apply to you.
Online links to loan calculators are available at the bottom of this page to help you determine payment amounts based on your actual federal loan debt.
Standard Repayment Plan: You make fixed monthly payments for up to 10 years. Your payment must be at least $50 a month.
Graduated Repayment Plan: Your payments start off lower at first and then gradually increase, usually every two years. The loan must be repaid within 10 years. At a minimum, your payments must cover the interest that accumulates on your loans between payments.
This plan is tailored to individuals with relatively low current incomes who expect their income to increase in the future. However, you'll ultimately pay more for your loan than you would under the Standard Repayment Plan because more interest accumulates in the early years of the plan when your outstanding loan balance is higher.
Extended Repayment Plan: You make fixed monthly payments over a period of time not to exceed 25 years. To qualify, you must have more than $30,000 in outstanding Direct Loans. Your fixed monthly payment is lower than it would be under the Standard Repayment Plan but you'll ultimately pay more for your loan because of the interest that accumulates during the longer repayment period.
Income-Based Repayment Plan: Under this plan, your required monthly payment amount will be based on your income during any period when you have a partial financial hardship. Your monthly payment amount may be adjusted annually. The maximum repayment period under this plan may exceed 10 years and after 25 years the unpaid portion will be forgiven. However, you may have to pay income tax on the amount that is forgiven.
If you repay under this plan and meet certain other requirements you may qualify for Public Service Loan Forgiveness after 10 years of payments.
Loan Repayment Calculators
The calculators below will provide you with an estimated monthly payment when you enter in the total amount of your federal student loan debt.
If you do not know the total outstanding balance on your federal student loans, please visit www.nslds.ed.gov. You will need your U.S. Department of Education Personal Identification Number (PIN) to login to the site. The PIN is the same 4-digit code you have used to complete your FAFSA online.
