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Standard Repayment
With this option you will make level principal and interest payments each month throughout your loan term. You will pay the least amount of total interest using the Standard Repayment plan. Sample schedules are shown below.
Graduated Repayment
Graduated repayment allows you to make reduced payments in the early years of repayment and still pay off your loan within the standard 10-year repayment term. Initial monthly payments can be up to 40% lower (depending on the servicer) than the payments you would make with Standard Repayment. Since the principal is not paid down as quickly as with Standard Repayment, you will pay more interest over the life of your loan. Sample schedules are shown below.
Income Sensitive Repayment
With Income Sensitive Repayment, monthly installments are adjusted annually based on your income, loan balance, interest rate, and maximum repayment term. Each payment must be large enough to cover accruing interest. Like other plans, you have 10 years to repay your loan, although that may be extended under special circumstances. |
