Loan Repayment Options

1.  Standard repayment.

The standard repayment of federal student loan is 10 years. Principal and interest payments are due each month throughout the loan repayment term. 

2. Extended repayment.

This will lengthen the term of your loan to up to 25 years. To qualify, you must owe at least $30,000. Your payments will be lower, but you will pay more in interest. There is no penalty, though, for paying off your loans early, so you can always increase your payments once you start earning more income.

3. Graduated repayment.

This plan lets you make interest-only payment for up to four years. After that, your payments will rise gradually so your loan will be repaid in 10 years.

4. Income-sensitive repayment.

Your monthly payment will be based on your income and the amount you owe. Borrowers must apply annually for this option and are usually asked to provide copies of tax return and W-2 forms.

5. Loan consolidation.

This is worth considering if you have several federal loans. You can combine them into a single loan and extend the term for up to 30 years, depending on the amount you owe.

6. Loan deferment. 
 
Deferment lets you temporarily suspend making loan payments. You may be granted deferment on your loan for a variety of reasons.

• For more information, please contact your lender www.dlservicer.ed.gov or www.salliemae.com