Repayment Begins

Repayment on your loans begins when your loan's 6-month grace period has expired. Generally, you have 10 years to repay your loans.

Grace Period

When you drop below half-time enrollment, you have a period of time before your loan enters into repayment, called "Grace Period". A loan's grace period lasts for 6 months.

• If you fail to begin classes at half-time enrollment before the 6 month grace period expires, your loan will enter into repayment status. During this period, you'll receive repayment information from your loan servicer and you will be notified of your first payment due date.
• If you should attend classes at half-time enrollment after you entered into repayment, you can request a deferment from your loan servicer to postpone payments. The next time you drop below half-time enrollment, you must begin making payments within 30 days. You are not eligible for another 6 month grace period.
• If you begin classes again at half-time enrollment before the 6 month grace period expires, your loan will not enter into repayment. In addition, your grace period will renew to a 6-month time period the next time you drop below half-time enrollment again. Think of the grace period as recycling itself.


Repayment Options

Visit the Department of Education's website for your options of repayment plans and calculators to determine your interest rate and loan payment amounts. You also have the option to change repayment plans once each year by contacting the Direct Loan Servicing Center.

Standard Repayment:

The standard plan allows you to pay the same amount each month, with up to 10 years to repay. Your monthly payment must be at least $50.

Graduated Repayment:

Your payments start out low (as little as interest only) and gradually increase over time, with up to 10 years to repay.

Extended Repayment:

This plan is for outstanding student loan debt greater than $30,000. Payments can be fixed or may gradually increase over time, with up to 25 years to repay.

Income-Based Repayment (effective July 1, 2009):

Income Based Repayment (IBR) is a new repayment plan. Under IBR, the required monthly payment is capped at an amount that is intended to be affordable based on income and family size.

Income Contingent Repayment (ICR) (Direct Loans Only):

Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans.

Below is an example of a 10-Year repayment Chart with loan payment amounts and interest rates