Repayment Options

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You’ll begin making monthly payments on your federal Stafford student loan once your six-month grace period ends. If you have a PLUS loan, you'll begin making monthly payments within 60 days after full disbursement unless you qualify for a deferment, as outlined below. The repayment amount is determined by how much you borrow and the repayment option you choose.

You can get an idea of monthly repayment amounts using the charts below. The charts show the current interest rates and the 10-year repayment period.

More information is available in our "Guide to Repaying Stafford & Grad PLUS Student Loans" or by contacting your lender. You can also call OGSLP's borrower hotline at 800.442.8642 (toll-free) or 405.234.4340.

Quick Content Links

• Repayment Options
> Income-Based Repayment (IBR)
• Repayment Start Date
• Subsidized loan - 6% interest rate chart
• Unsubsidized loan - 6.8% interest rate chart
• PLUS loan - 8.5% interest rate chart
• Federal Consolidation Loans

Repayment options

There are five repayment options for you to consider. If you're interested in any of these options, contact your lender for more information.

Standard Repayment

This plan is the most financially effective way to repay your student loan while minimizing interest costs.
Payments are due monthly, even if you don't receive any notifications or statements (excluding periods of deferment or forbearance).
This schedule has a 10-year repayment term.

Graduated Repayment

This plan is ideal if you have limited income now, but expect to earn more in the future; however, total interest costs are typically higher over the life of the loan.
Monthly payments begin low, then increase gradually over time.
Payments must cover accruing interest.
This schedule has a 10-year repayment term.

Income-Sensitive Repayment

This plan is appropriate if your income fluctuates, you have substantial loan balances or you need smaller monthly payments to meet other financial obligations; however, total interest costs are typically higher over the life of the loan.
Monthly payments are adjusted based on gross monthly income.
Payments must cover accruing interest.
This plan must be renewed each year.

Extended Repayment

This plan is only available to new borrowers on or after Oct. 7, 1998 who have Federal Family Education Loan Program (FFELP) loans totaling more than $30,000.
You can choose either the standard or graduated repayment option (both are described above).
The repayment term can be up to 25 years.

Income-Based Repayment

The Income-Based Repayment (IBR) plan is designed to make loan repayment easier for borrowers with lower salaries. The plan:

Caps the monthly payments at a percentage of a borrower's discretionary income and factors in family size and total amount borrowed.
Adjusts the monthly payment amount each year based on changes in annual income and family size.
Sets a maximum repayment period of 25 years. After 25 years, any remaining debt is forgiven.

More information and the necessary forms are available on our Income-Based Repayment plan Web page. You can also learn more and use an IBR calculator to estimate your payments on the U.S. Department of Education's Web site. « Back

Use our Loan Calculator to get your customized monthly payment estimate.

Repayment Start Date

Repayment on federal Stafford loans begins six-months after you graduate or drop below half-time enrollment. This six-month period, called a grace period, gives you time to find a job.

For PLUS loan borrowers, the first payment is due within 60 days after full disbursement unless the borrower qualifies for a deferment. Parent PLUS loan borrowers can defer their loan:

When the parent borrower is enrolled at least half-time at an eligible school.
When the student for whom the parent acquired the loan is enrolled at least half-time at an eligible school (upon borrower request).
During the six-month period immediately following the date on which the borrower ceased to be enrolled at least half-time at an eligible school (upon borrower request).
During the six-month period immediately following the date on which the student for whom the parent acquired the loan ceased to be enrolled at least half-time at an eligible school (upon borrower request).

Parent borrowers who are interested in a deferment must contact the lender about the eligibility requirements. Parent PLUS loans disbursed prior to July 1, 2008 have different deferment eligibility requirements.

For graduate and professional student PLUS loan borrowers, the first payment is due within 60 days after full disbursement unless the borrower qualifies for a deferment. Graduate or professional student PLUS loan borrowers can defer their loan:

When the graduate or professional student borrower is enrolled at least half-time at an eligible school.
During the six-month period immediately following the date on which the graduate or professional student borrower ceased to be enrolled at least half-time at an eligible school (upon borrower request).

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Subsidized Loan 6% Interest Rate Repayment Chart
Loan Amount	Minimum Monthly Payment	Total Interest Paid	Total Amount Paid
$5,000	$56	$1,661	$6,661
$7,500	$83	$2,492	$9,992
$12,000	$133	$3,987	$15,987
$20,000	$222	$6,645	$26,645
$40,000	$444	$13,290	$53,290

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Unsubsidized Loan 6.8% Interest Rate Repayment Chart
Loan Amount	Minimum Monthly Payment	Total Interest Paid	Total Amount Paid
$5,000	$58	$1,905	$6,905
$7,500	$86	$2,857	$10,357
$12,000	$138	$4,572	$16,572
$20,000	$230	$7,619	$27,619
$40,000	$460	$15,239	$55,239

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PLUS Loan 8.5% Interest Rate Repayment Chart
Loan Amount	Minimum Monthly Payment	Total Interest Paid	Total Amount Paid
$5,000	$62	$2,439	$7,439
$7,500	$93	$3,659	$11,159
$12,000	$149	$5,854	$17,854
$20,000	$248	$9,757	$29,757
$40,000	$496	$19,513	$59,513

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Federal Consolidation Loans

Due to market conditions, many lenders aren't currently offering consolidation loans. If you're considering student loan consolidation, please contact your existing lender(s) for more information about consolidation or other repayment alternatives.

Consolidation allows you to combine all your federal education loans into a single, more manageable loan, make one monthly payment to a single loan holder and extend your repayment period to a maximum of up to 30 years depending on the consolidated loan amount.

To be eligible for a Federal Consolidation loan, you must certify you don't have another application for a consolidation loan pending with another lender and either:

Be enrolled in school less than half time or no longer enrolled
Be in your grace period
Be in repayment

If you choose to consolidate your loans, you’ll still have the option to choose from the standard, graduated, income-sensitive, income-based or extended (if applicable) repayment schedules.

Consolidation loans aren't for everyone. Research the advantages and disadvantages to determine if a consolidation loan is best for you. If you wish to apply for a consolidation loan, contact your current loan holder.
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Repayment Options

Repayment options

Repayment Start Date

Subsidized Loan 6% Interest Rate Repayment Chart

Unsubsidized Loan 6.8% Interest Rate Repayment Chart

PLUS Loan 8.5% Interest Rate Repayment Chart

Federal Consolidation Loans

Entering Repayment

Managing Repayment

Recovering from Default

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