Repayment Schedules
You will begin making monthly payments on your student loan after your grace period expires. The repayment amount and period are determined by the loan amount and schedule of repayment (see below for more information about repayment schedules).
Use the following chart to get an idea of the monthly payment amounts needed to pay off your student loan. These charts illustrate the required $50 minimum monthly payment, the current interest rates of 6.0, 6.8 and 8.5 percent, and the 10-year repayment period.
For example: If you borrowed a total of $12,000 in Federal Stafford loans with an 6.0 percent interest rate and a repayment period of 10 years, you would pay an additional $3,989 in interest; therefore, the total amount you would have to repay over the 10 years would be $15,989.
Note: Federal Stafford and PLUS loans disbursed prior to July 1, 2006, have variable interest rates that will change annually, but will not exceed 8.25% for Federal Stafford and 9.00% for PLUS. However, loans first disbursed on or after July 1, 2006, have fixed interest rates - 6.80% for Federal Stafford loans and 8.50% for Federal PLUS loans.
Loan Amount |
Minimum Monthly Payment |
Total Interest Paid |
Total Amount Paid |
|---|---|---|---|
$1,000 |
$50 |
$50 |
$1,050 |
$5,000 |
$56 |
$1,661 |
$6,661 |
$7,500 |
$83 |
$2,492 |
$9,992 |
$12,000 |
$133 |
$3,989 |
$15,989 |
$20,000 |
$222 |
$6,645 |
$26,645 |
$40,000 |
$444 |
$13,290 |
$53,290 |
Loan Amount |
Minimum Monthly Payment |
Total Interest Paid |
Total Amount Paid |
|---|---|---|---|
$1,000 |
$50 |
$64 |
$1,064 |
$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 |
Loan Amount |
Minimum Monthly Payment |
Total Interest Paid |
Total Amount Paid |
|---|---|---|---|
$1,000 |
$50 |
$100 |
$1,100 |
$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 |
There are four repayment schedules for you
to consider. If you are interested in any of these options, contact
your loan holder to obtain the required forms.
Standard Repayment Schedule
This plan is the quickest and most financially effective way to pay off your student loan while minimizing interest costs.
The loan is repaid in a maximum of 120 equal monthly payments (10-years) unless you receive a deferment or forbearance.
Graduated Repayment Schedule
This plan is ideal if you have limited income today but expect to have higher earnings in the future. However, total interest costs over the life of the loan are typically higher.
The monthly payments, which must be sufficient to cover the interest each month, begin low and increase gradually as your income increases.
Income-Sensitive Repayment Schedule
This plan allows your monthly payments to be adjusted to fit your current annual income, but each payment must be large enough to cover accruing interest.
This repayment plan is appropriate if your income fluctuates, you have substantial loan balances or you need smaller monthly payments in order to meet other financial obligations. However, your total interest costs are typically higher over the life of the loan.
This plan must be renewed each year, and your monthly payments can be adjusted annually for up to five years. The payments are adjusted based on income, loan balance, interest rate and maximum repayment term.
If you use the income-sensitive repayment plan for the maximum five years, you will still have the opportunity to repay your loans under one of the other repayment plans.
Extended Repayment Schedule
This plan is limited to “new borrowers” on or after October 7, 1998, with an outstanding balance of principal and interest in Federal Family Education Loan Program loans totaling more than $30,000.
You may choose either the standard or graduated repayment schedule over a period not to exceed 25 years.
Federal Consolidation Loans
The Federal Consolidation Loan Program allows you to combine all of your federal education loans into a single, more manageable loan, allowing you to make one monthly payment and extending your repayment period up to 30 years depending on the loan amount. You may also be able to secure a lower fixed interest rate for the life of the loan.
If you choose to consolidate your loans, you will still have the option of choosing from the standard, graduated, income-sensitive or, if applicable, an extended repayment schedule.
Consolidation loans are not for everyone. Consider the advantages and disadvantages, and determine if the repayment of a consolidation loan is best for you.
If you wish to apply and would like more information about consolidation, contact your current loan holder.