You must repay the full amount of each Direct Loan you receive, plus interest.

The repayment period for each Direct Subsidized Loan and Direct

Unsubsidized Loan that you receive begins on the day after your grace period ends. The Direct Loan servicer will notify you of the date your first payment is due.

The repayment period for each Direct PLUS Loan that you receive begins on the date the final loan disbursement is made. There is no grace period for Direct PLUS Loans. However, you may defer making payments while you are enrolled in school at least halftime, and (for Direct PLUS Loans with a first disbursement date on or after July 1, 2008) for an additional six months after you cease to be enrolled on at least a half-time basis.

You must make payments on your loan even if you do not receive a bill or repayment notice. Billing information is sent to you as a convenience, and you are obligated to make payments even if you do not receive a notice or bill.

There are five repayment plans with different terms that are designed to meet the financial needs of almost any borrower. If you can show that the terms of these plans are not adequate to meet your exceptional circumstances, we may provide you with an alternative repayment plan.

You can change repayment plans at any time by going to your Direct Loan servicers website and logging in to your account.

You may prepay all or any part of the unpaid balance on your loans at any time without penalty.

You may choose one of the following repayment plans to repay your loans:

Standard Repayment Plan
You will make fixed monthly payments and repay your loans in full within 10 years (not including periods of deferment or forbearance) from the date
the loans entered repayment. Your payments must be at least $ 50 a month and will be more, if necessary, to repay the loans within the required time period.

Graduated Repayment Plan
You will make lower payments at first, and your payments will gradually increase over time, generally every two years. You will repay your loans in full within 10 years (not including periods of deferment or forbearance) from the date the loans entered repayment. No single payment will be more than three times greater than any other payment.

Extended Repayment Plan
To be eligible for this plan, your Direct Loan balance must be greater than $ 30,000. You have the option of making a fixed monthly payment amount, or a graduated payment amount that starts out lower and increases over time. Your monthly payments will be at least $ 50, and 12 Entrance Counseling Guide you will have up to 25 years to repay your loans (not including periods of deferment or forbearance).

Income Contingent Repayment Plan
Your monthly payment amount will be based on your annual income (and that of your spouse if you are married), your family size, and the total amount of your Direct Loans. Until we obtain the information needed to calculate your monthly payment amount, your payment will equal the amount of interest that has accrued on your loans unless you request forbearance. As your income changes, your payments may change. If you do not repay your loans after 25 years under this plan, the unpaid portion will be forgiven.
You may have to pay income tax on any amount forgiven.

Income-based Repayment Plan
To qualify for this plan, you must have a partial financial hardship. This means that your federal student loan debt must be high relative to your income and family size, as determined under federal regulations. Under this plan, during any period when you have a partial financial hardship your required monthly payment is capped at an amount that is intended to be affordable based on your income and family size. Your monthly payment amount may be adjusted annually. If you repay under this plan and meet certain requirements over a 25-year period, any outstanding balance on your loans will be forgiven. You can obtain more information about the Income-based Repayment Plan in the
“Repaying Your Loans” section of Student Aid on the Web (

Repayment Incentives

A repayment incentive is a benefit (such as a reduced interest rate) that is offered to encourage you to repay your loans on time. You may be required to make a certain number of payments on time to keep the benefits of the repayment incentive.

The two repayment incentive programs may be available to you. Your Direct Loan servicer can tell you if any other repayment incentive programs are available.

George Jefferson is an Education Specialist with (  Complete Schools has Information on over 6,500 colleges and 120,000 public and private schools. Complete Schools also hosts a large resource section to help you achieve your educational goals. Resources include Student Loans.

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