Graduated Repayment Plan
Non-Consolidation Loans
Under this plan, you will pay a minimum payment amount 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. Generally, the amount you will repay over the term of your loan will be higher under the Graduated Repayment Plan than under the Standard Repayment Plan. This plan may be beneficial if your income is low now but is likely to steadily increase.
Consolidation Loans
Under this plan, you will pay a minimum payment amount at least equal to the amount of interest accrued monthly for up to 10 to 30 years, based on your total education indebtedness. Your payments start out low, and then increase every two years. Generally, the amount you will repay over the term of your loan will be higher under the Graduated Repayment Plan than under the Standard Repayment Plan. This plan may be beneficial if your income is low now but is likely to steadily increase.
Total Education Indebtedness Amounts and Maximum Number of Monthly Payments for the Graduated Repayment Plan (for consolidation loans only)
| If your Total Education Indebtedness is: | Your Maximum Number of
Monthly Payments |
|---|
| At Least | Less Than |
|---|
| | $ 7,500 | 120 (10 years) |
| $ 7,500 | $10,000 | 144 (12 years) |
| $10,000 | $20,000 | 180 (15 years) |
| $20,000 | $40,000 | 240 (20 years) |
| $40,000 | $60,000 | 300 (25 years) |
| $60,000 | | 360 (30 years) |