Student Loan Consolidation Repayment Options
When you consolidate your student loans, you will have a variety of repayment options. Here's a breakdown of those options:
Standard Repayment
This option provides equal monthly payments over the term of the loan.
Graduated Repayment
This option allows for low initial payments, which then increase incrementally every 2 years. Payments can start as low as your monthly interest amount and be paid over 10-30 years.
Extended Repayment
This plan allows for repayment over a 25 year period. Borrowers can choose from a fixed or graduated repayment option and must have at least $30,000 in federal student loan debt to be eligible.
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Income Contingent Repayment
The ICR plan is based on annual income, family size, and your total direct loan balance. Under this plan, borrowers may repay over a period of up to 25 years.
Income-Based Repayment
Similar to ICR, Income-Based Repayment is based on income and family size and spread over a 25 year period. The difference is that to be eligible for IBR, the borrower must be experiencing financial hardship. If selected, the IBR plan does not allow borrowers to switch to any other plan except Standard Repayment.
The length of time you can choose to repay your loan is dependent on your total loan balance, both for those loans you are consolidating and for any additional education loans that you have, but are not consolidating.
Note: maximum repayment period excludes authorized periods of deferment and forbearance.
