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Repayment Schedules (Continued)
- Graduated Repayment Schedule
A graduated repayment schedule is based on the borrower
making smaller payments in the beginning of the repayment period and
gradually increasing the payments over the term of the loan. This is
helpful when you are first beginning your career and will be increasing
your income level over time.
- Income Sensitive Repayment Schedule
An income sensitive repayment schedule offers borrowers
a repayment schedule that is based on his/her total monthly gross income
received from employment and other sources. Borrowers must reapply for
this repayment program each year to reflect possible changes in income.
- Extended Repayment Schedule
An extended repayment schedule is available
to new borrowers or borrowers with no outstanding FFELP
loan debt who then obtain a Federal Stafford, PLUS, or Consolidation
loan on or after October 7, 1998. These borrowers must have
an outstanding balance of principal and interest totaling
more than $30,000. Borrowers can lengthen their repayment
term up to 25 years, thereby lowering their monthly payments.
Be aware, though, that the longer the repayment period,
the more interest you will have to pay.
| Comparison of Repayment Schedules at 6.8%
Interest |
| Repayment Plan |
Loan Debt |
Monthly Payments |
Remaining Monthly Payments |
Number of Payments |
Total Amount
Paid |
| Standard | $35,000 |
$403 | ----- | 120 |
$48,334 |
| Graduated* |
$35,000 |
$198* |
$474 | 120 |
$50,236 |
| Income Sensitive** |
$35,000 |
$200* |
$435 |
120 |
$49,264 |
| Extended | $35,000 |
$243 | ----- | 300 |
$72,878 |
| * 2 years of interest only |
| ** Based on Annual Gross Income of $60,000 and a contribution
of 4% of income for one year only. |
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