Repayment
The most important thing you can do during repayment is to stay in close contact with your lender. If you have trouble making your monthly payments and need help, contact your lender to learn more about the many options available to you. Loan servicing information is available at www.studentaid.gov.
Sample Loan Repayment Schedule
| Loan |
Direct Subsidized/Unsubsidized Loan |
Direct Parent PLUS Loan |
| Amount Borrowed |
$5,500 |
$7,000 |
| Interest Rate |
4.5% |
7.1% |
| Standard Repayment Plan |
120 months, $57 per month |
120 months, $82 per month |
| Interest |
$1,340 |
$2,796 |
| Total Paid |
$6,840 |
$9,796 |
Here is a brief summary of the repayment guidelines established in your promissory note:
- Your payments are expected on a monthly basis.
- Unless your lender agrees otherwise, the minimum monthly payment will be at least $50.
- Your minimum annual payment will not be less than the amount of interest due and payable.
- The maximum time allowed for repayment is usually 10 years.
- You may prepay on your loan at any time without penalty. This will reduce the total amount of interest you pay on your loan.
- Your lender will give you the opportunity to choose a standard, graduated, income-sensitive, or extended repayment schedule.