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Loan Repayment

Student loans must be repaid! Whenever a student graduates, withdraws, or drops below half-time enrollment, the student's six-month grace period begins. Six months later, the student must begin to repay the student loan(s). Plan for repayment from the time the first loan is received!


Standard Repayment
With the standard plan, you will pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you will have up to 10 years to repay the loans.

Extended Repayment
Under the extended plan, you will pay a fixed annual or graduated repayment amount over a period not to exceed 25 years.

Graduated Repayment
With this plan, your payments start out low and increase every two years. The length of your repayment period will be up to 10 years.

Income Based Repayment (IBR) Effective July 1, 2009
Income based repayment is a new repayment plan for the major types of federal loans made to students. 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 Loan Only)
This plan gives you the flexibility to meet your Direct Loans obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you are married), family size, and the total amount of your Direct Loans. The maximum repayment period is 25 years.

Income-Sensitive Repayment Plan (FFEL Loans only)
With an income-sensitive plan, your monthly payment is based on your annual income. The maximum repayment period is 10 years.


The chart below may be used as a guide to estimate your monthly payment on your William D. Ford Federal Direct Loan. Your repayment period begins six months after graduation or after ceasing to be enrolled at least half-time.

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A deferment temporarily postpones payment on your loans. You may be eligible for deferment for a variety of reasons. You may be eligible for deferment if you are:
At least half-time study at a postsecondary school
Study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled
Unable to find full-time employment (up to 3 years)
Economic hardship (includes Peace Corps Service) (up to 3 years)
Active Military Duty while borrower is on active duty during a war or other military operation or national emergency and if the borrower was serving on or after October 1, 2007, for an additional 180-day period following the demobilization date for the qualifying service

To apply for a deferment or forbearance (the temporary postponement or reduction of loan payments for a limited and specified period or an extension of time to make your loan repayments) contact:

FFEL Loans (includes FFEL PLUS Loans) – contact the lender or agency holding your loan.

William D. Ford Federal Direct Loans (includes Direct PLUS Loans) – contact the Direct Loan Servicing Center at 1-800-848-0979

Regardless of which type of federal student loan you have, you must pay the interest that accrues (accumulates) during any period of forbearance.

More information on deferments can be found online at





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