Federal Direct Loan Program Repayment Plans

There are several repayment plans from which you can select to repay your loan(s). You will be given the opportunity to choose one of the following four loan repayment plans:

Standard Repayment Plan requires you to pay a fixed amount each month, at least $50, for up to 10 years. The length of your actual repayment period will depend on your loan amount.
Extended Repayment Plan allows you to extend loan repayment over a period that is generally 12 to 30 years, depending on your loan amount. Your monthly payment may be lower than it would be if you repaid the same total loan amount under the Standard Repayment Plan, but you may repay a higher total amount of interest over the life of your loan because the repayment period may be longer. The minimum monthly payment is $50.
Graduated Repayment Plan, offers payments that are lower at first and then increase generally every two years. The length of your repayment period will generally range from 12 to 30 years, depending on your loan amount. Your monthly payment may range from 50 percent to 150 percent of what it would be if you were repaying the same total loan amount under the Standard Repayment Plan. However, you'll repay a higher total amount of interest because the repayment period is longer than it is under the Standard Repayment Plan.
Income Contingent Repayment Plan bases your monthly payment on your yearly income, family size, and loan amount. As your income rises or falls, so do your payments. After 25 years, any remaining balance on the loan will be forgiven, but you may have to pay taxes on the amount forgiven.
These repayment plans will be explained in more detail during your exit counseling session. If you do not choose one of the plans, the Department of Education will select a repayment plan for you.
If you demonstrate to the satisfaction of the U.S. Department of Education that the terms and conditions of the four repayment plans are not adequate to accommodate your exceptional circumstances, the Department of Education may provide an alternative repayment plan.

Special Repayment Plans

In addition, the following repayment options will be available in certain circumstances:

Federal Direct Consolidation Loan Program is available under which you (or you and your spouse jointly) may consolidate multiple federal education loans into one debt. This consolidation loan permits multiple debts to be combined into one monthly payment. For additional information, you should contact the Servicer or the financial aid office at your school.
Under certain circumstances, some military personnel may qualify to have their loans repaid by the Secretary of Defense (10 U.S.C. 2141) as part of a military recruitment program. You remain responsible for any payments due on your loan(s) even though you may qualify for military repayment programs. For additional information, contact your local military recruiter.

There will be no penalty for prepaying any portion of your loan.