Repayment Options
Payment options
Knowing your payment options ahead of time can make your money management strategies workable
| Repayment Option |
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Standard Repayment
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- This option allows you to pay in low monthly payments.
- The interest and principal payments are due once per month for the duration of the repayment period, which can last up to ten years.
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Graduated Repayment
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- Both the principal and interest are due immediately. But you can start with a low monthly payment at first and gradually increase your monthly amount as you become more established. This greatly reduces your initial monthly payments and allows you to repay your loan and still meet other financial obligations.
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Income-Sensitive Repayment
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- Payments are based on your gross monthly income, and are adjusted annually.
- Loan payments must cover accruing interest and must be large enough to pay off the loan within 10 years.
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Extended Repayment Plan
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- Designed for borrowers who, on or after October 7, 1998, accumulate Federal Family Education Loans of more than $30,000, this plan has fixed annual or graduated prepayment amounts which can be repaid over a period of up to 25 years.
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Non-penalty Pre-Payment Options
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- You can pay off your entire loan balance in full, send in extra money with your monthly coupon to advance your next payment due date or apply money to your principal balance without penalty.
- If you want to apply the extra money to your principal, you must note this on your coupon.
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Automatic Payments
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- You can have your monthly payment deducted from your personal checking or savings account. Stop by your local branch for an authorization form or contact us at 1-866-705-9301.
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