Federal Student Loan Counseling

REPAYMENT OPTIONS

There are three repayment plans available to Federal Stafford Loan borrowers: Standard, Graduate, and Income-Sensitive. All three repayment plans normally require that the loan be repaid within ten years. You may repay the loan early with no penalties. Your lender can tell you which repayment option is best for you.

Standard Repayment

requires you to pay a fixed amount each month - at least $50.00 or the interest that has accrued.
Perkins Loans have a fixed repayment rate. The minimum payment is $40 per month or $120 per quarter. Depending on the amount that you borrowed, the payment may be higher in order to guarantee payment in full within ten years.

Graduated Repayment

allows your payments to be lower at first and then increase over time.
No scheduled payment may be more than three times greater than any other of your scheduled payments.

Income-Sensitive Repayment

bases your monthly payment on your yearly income and your loan amount. As your income rises or falls, so do your payments.
No single required payment may be more than three times greater than any other of your required payments.
Each of your payments must at least equal the interest accrued on the loan between scheduled payments.

Loan Consolidation

To consolidate your loans and for more information, go to www.loanconsolidation.ed.gov.

If you have more than one loan, you may be able to consolidate these loans into one loan.
Consolidation simplifies the repayment process because you make only one payment each month.
The interest rate on a consolidated loan may be at a higher interest rate. Loan consolidation will extend your repayment up to 30 years.

Lenders offering consolidation loans:

QUIZ QUESTION:

I must repay a Perkins Loan and/or Stafford Loan with all accrued interest and deducted fees.
True False

In order to complete your loan counseling session, it is important that you read all of the provided information. You will then need to complete the form at the end of the six information pages provided.

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