Brazos - Income Sensitive Repayment

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	An Income Sensitive Repayment plan sets the monthly payment based on your annual income and the balance of your loan. Payments will be adjusted up or down as your income rises or falls.
	All payments must at least equal the interest accrued on the loan between scheduled payments.
	The advantage of this repayment plan is that it allows you to tie your payments to the income that you are earning. If your income goes up, your payments go up. If your income goes down, your payments go down.
	A disadvantage of this plan can be that you may pay more interest over the life of the loan than you would with a Standard Repayment plan.
	You may be required to provide proof of income (a tax return) on an annual basis.
	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.
	You may request a Graduated Repayment plan by calling (800) 453-0841.

The chart below compares a Standard Repayment plan to an Income Sensitive Repayment plan.

COMPARISON OF STANDARD AND INCOME SENSITIVE REPAYMENT PLANS¹

Total Debt When Borrower Enters Repayment	Standard²		Income Sensitive³ Income=$25,000
Total Debt When Borrower Enters Repayment	Monthly Payment	Total Repaid	Monthly Payment	Total Repaid
$2,500	$50	$2,958	$83	$2,747
$5,000	$58	$6,942a	$83	$6,059
$7,500	$87	$10,413	$83	$10,723
$10,000	$116	$13,884	$83	$16,056
$15,000	$174	$20,825	$103	$25,824

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).

Assumes a 5% annual income growth (Census Bureau). Payment equals greater of 4% of income or interest only. If payment calculation drops below the Standard Repayment Plan amount in a given year, the term is extended by one year. The maximum number extension of the repayment period is five years, or, a maximum term is 15 years, the last 10 of which would be under the Standard Repayment Plan (equal and fixed).

To view an estimated payment schedule based on your current income and loan balance, click here.

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Income Sensitive Repayment