repayment Options
| Repayment Option |
Description |
Eligibility Criteria |
| Standard Repayment Schedule |
- A payment amount that is the same for each
monthly payment throughout the repayment period,
except that the final payment may be slightly
more or less than the other payments; or
- A payment amount that will be adjusted yearly
based on the loan's variable interest rate.
- Cannot exceed 10 years, excluding in-school,
grace, deferment, and forbearance periods.
|
- The borrower has not selected an income-sensitive
or graduated repayment schedule within 45 days
after the lender notifies them to choose a
repayment schedule; or
- The borrower chooses an income-sensitive repayment
schedule but does not provide the requested documentation
to the lender within a specified period of time.
|
Graduated Repayment Schedule
|
- A payment amount that is schedule to change
(usually increasing) over the repayment period.
- Cannot exceed 10 years (or 25 years for borrowers
eligible for an extended repayment schedule),
excluding in-school, grace, deferment, and forbearance
periods.
|
- The borrower must request a graduated repayment
schedule from the lender.
|
Income-Sensitive Repayment Schedule
|
- A payment amount that is adjusted annually,
based solely on the borrower's expected total
monthly gross income received from employment
and other sources during the course of the
repayment period.
- Cannot exceed 10 years, excluding in-school,
grace, deferment, and forbearance periods.
|
- The borrower must request an income-sensitive
repayment schedule from the lender.
- The borrower must provide the lender with documentation
of their expected total monthly gross income
from all sources.
- The borrower cannot provide the required documentation
more than 90 days prior to first payment due
date.
|
| Extended Repayment Schedule |
- May provide for standard or graduated payment
amounts over a period not to exceed 25 years.
|
- The borrower must be a new borrower on or
after October 7, 1998 and has an outstanding
principal and interest balance in Federal Family
Education Loan Program* (FFELP) loans totaling
more than $30,000.
|
*The Federal Family Education Loan Program (FFELP) consists
of the following loan types:
