Federal Direct Loans
Repayment
Repayment begins 6 months after graduation, withdrawal or enrollment less than half-time. Beginning July 1, 2009 students may select from one of five repayment options:
- Standard Repayment Plan
Fixed annual repayment amount.- Paid over 10 years.
- Extended Repayment Plan
- Fixed annual repayment amount.
- Paid over an extended period of time, not to exceed 25 years.
- Must repay minimum amount as determined by the
US Department of Education.
- Graduated Repayment Plan
- Annual repayment amount increases every 2 years.
- Established at two or more graduate levels.
- Paid over 10 years.
- At a minimum, your payments must cover the interest that accumulates on your loan between payments.
- Income Contingent Repayment Plan
- Each year the monthly payment is based on your annual income and amount borrowed and cannot exceed 20% of any earning above the
poverty level (determined by the DOE). - Maximum repayment period is 25 years.
- Income Based Repayment (IBR) Program
- Payments based on income and family size.
- Monthly payment based on what you can afford, using a sliding scale:
If you earn below 150% of the poverty level for your family size, your
payment will be 0. If you earn more than 150% of the poverty level, your loan payment will be capped at 15% of whatever you earn above that
amount. Except for the highest earners, this amount will usually be less
than 10% of total income.
Remaining debt, if any, forgiven after 25 years of qualifying payments.
For questions about your Federal Direct Student Loans: Call 1-800-848-0979 or visit Direct Loan Servicing online (repayment calculator provided).
To access your individual financial aid portfolio (aid received from all schools attended) visit the National Student Loan Data System (NSLDS).
The U.S. Department of Education will provide the borrower with an opportunity to select a repayment plan. If the borrower does not select a plan, the department will assign the Standard Repayment Plan, and will issue a repayment schedule that provides payment amounts and due dates. The department may grant the borrower forbearance to eliminate a delinquency. The borrower may prepay all or any part of the unpaid balance on the loans at any time without penalty.
For more information about repayment options and the new IBR Program:
Federal Student Aid repayment webpage
Student Loan Borrower Assistance repayment webpage
More about the IBR Program
For additional information on loan options and rights, visit The Student Loan Borrower Assistance website – a resource for borrowers, their families and advocates.
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