Loan Repayment Information
There are many repayment options offered to borrowers including standard repayment, extended, graduated, income contingent and income-based repayment. Below is a description of each of the repayment options.
Please note: the Perkins Loan and Federal Nursing Loan are administered by the Long Term Loan Office at Grand Valley. Review repayment, billing and exit counseling information by visiting the Long Term Loan Office website.
Standard Repayment Plan
This plan has a fixed amount of at least $50 each month for up to 10 years. This plan results in the lowest total interest paid of any repayment plan. If you have not selected a repayment plan by the time repayment begins, your loan(s) will be placed on this plan.
Extended Repayment Plan
This plan has a minimum payment of at least $50 or the amount of interest accrued monthly, whichever is greater, for up to 25 years. Your payments start out low and then increase every two years. In order to be eligible for this plan your Direct Loan balance must be greater than $30,000. This plan may be beneficial if your income is low now, but is likely to steadily increase.
Graduated Repayment Plan
This plan has a minimum payment at least equal to the amount of interest accrued monthly for up to 10 years. Your payments start out low, and then increase every two years. This plan may be beneficial if your income is low now, but is likely to steadily increase.
Income Contingent Repayment Plan
This plan is designed to give you the flexibility to meet your student loan obligations without causing undue financial hardship. The maximum repayment period is 25 years under this plan. You are not eligible for this plan if you have a Direct PLUS Consolidation Loan(s) made before July 1, 2006 and/or a Direct PLUS Loan(s). Your monthly payment is based on your family size, annual AGI and total amount of your Direct Loan(s).
Income-Based Repayment Plan (IBR)
This plan is an alternative to the Income Contingent Repayment (ICR) Plan and is designed to make repaying education loans easier for borrowers in a partial financial hardship. Another difference is that IBR loans do not continue to accrue interest for the first three years. It is designed to help students who intend to pursue jobs with lower salaries, such as careers in public service.
Direct Loan Consolidation
A Direct Consolidation Loan allows a borrower to combine multiple federal student loans into one loan. The result is a single monthly payment instead of multiple monthly payments. Be sure to weigh the pros and cons of consolidating. While it does simplify loan repayment, it can also significantly increase the total cost of repaying your loans. For guidelines in determining if a consolidation is right for you go to Loan Consolidation.
Page last modified March 5, 2013