Types of Repayment Plans
Standard
Extended
Graduated
Perkins Loans & Private Loans
If you have a Perkins Loan or a private loan, your repayment options will differ, but may be similar. You can find your repayment terms for these loans on the promissory note you signed when you took out the loan.
Requirements & Terms
Each plan has its own set of terms and requirements, but one rule that applies to all of the programs is that you may switch from one plan to another for free. In other words, you can jump from the Standard Repayment Plan to the Income-Based Repayment Plan and on to the REPAYE plan at no cost. Review the information below to better understand your repayment plan options.
Explore The Different Types of Repayment Plans
Select a plan to view more about information
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Starting Your Repayment Plan
Upon the start of your loan payback, you’ll be automatically enrolled in the Standard Repayment Plan, unless you choose to sign up for a different program. If you do enroll in one of the income-driven programs, you can change to a different repayment program at any time, for free! For example, there is no fee to jump from the PAYE (Pay As You Earn) program to the REPAYE (Repay As You Earn) program.
Consolidated Loans & Repayment Plans
Consolidated loans are eligible for repayment plans as long as the loans are consolidated into a Direct Loan or Federal Family Education Loan. Many students choose to consolidate loans to avoid the confusion of multiple payments at different times of the month. Once loans are consolidated, you are responsible for a single payment only.
The exception to this rule is that you cannot use the Income-Contingent or Pay As Your Earn repayment plans if you have a FFEL or FFEL Consolidation Loan.
When Can I Consolidate?
As soon as you graduate, leave school or drop below half-time enrollment, you can consolidate your loans. If you consolidate your loans during your grace period, you will relinquish the remainder of your grace period and start repayment after your consolidation loan is paid out.
Unless you receive a deferment or forbearance on your loan, you can expect your first bill about two months after the consolidation loan is disbursed.
Sources:
- Mayotte, B. (2016, March 30) Income Sensitive Repayment: the Forgotten Student Loan Plan. Retrieved from https://www.usnews.com/education/blogs/student-loan-ranger/2016/03/30/income-sensitive-repayment-the-forgotten-student-loan-plan
- NA, ND. The Income-Sensitive Repayment Plan is available to low-income borrowers who have Federal Family Education Loan (FFEL) Program loans. Retrieved from https://studentaid.gov/manage-loans/repayment/plans/income-sensitive
- NA, ND. Income-Sensitive Repayment for Federal Student Loans. Retrieved from https://www.edvisors.com/repay-student-loans/federal/plans/income-sensitive
- U.S. Department of Education. Federal Student Aid. (2013, April 14). Retrieved from http://studentaid.ed.gov/repay-loans/understand/plans
- FinAid. Repayment plans. (2013, April 15). Retrieved from https://finaid.org/loans/repayment/
- American Student Assistance. Student Loan Statistics. (2013, April 17). Retrieved from http://www.asa.org/policy/resources/stats/