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A Graduated Repayment plan sets your payments lower at the beginning of your repayment period and then increases over time.
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All payments must at least equal the interest accrued on the loan between scheduled payments.
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The advantage of this repayment plan is that it allows you to have a lower payment when your income might be lower while you change or start a new career.
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The disadvantage of this plan is that you will pay more interest over the life of the loan than you would under a Standard Repayment plan.
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You are allowed to change your repayment plan once a year. You must request a change in your repayment plan. If you do not choose a repayment plan, the Standard Repayment Plan will be used.
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You may request a Graduated Repayment plan by calling (800) 453-0841.
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The chart below compares a Standard Repayment plan to a Graduated Repayment plan.
Comparison of Standard and Graduated Repayment Plans 1
| Total Debt When Borrower Enters Repayment |
Standard 2 |
Graduated 3 |
| 1st 48 Monthly Payments |
Remaining 72 Monthly Payments |
Total of All Payments |
| Monthly Payment |
Total Repaid |
Monthly Payment |
Monthly Payment |
Total Repaid |
| $2,500 |
$50 |
$2,907 |
$304 |
$30 |
$3,295 |
| $5,000 |
$56 |
$6,749 |
$30 |
$80 |
$7,207 |
| $7,500 |
$84 |
$10,123 |
$39 |
$125 |
$10,910 |
| $10,000 |
$112 |
$13,798 |
$52 |
$167 |
$14,547 |
| $15,000 |
$169 |
$20,247 |
$79 |
$251 |
$21,821 |
- Payments are calculated using a 6.29% annual interest rate and a ten-year repayment period. Examples only, actual numbers may vary.
- Equal and fixed monthly payments ($50 minimum).
- Interest payments only for the first 48 months ($30 minimum), then an equal and fixed payment for the last 72 months.
- When repaying $2,500 at $30 per month, the loan repayment period is 110 months.
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