Federal Family Loan Repayment

   FEDERAL FAMILY LOAN REPAYMENT

Basic Repayment Plan:

A fixed monthly amount is established (minimum USD 50.00).

Gradual Repayment Plan:

At the beginning payments will be comfortable, small amounts, and then they’ll start growing every year. Each amount must be at least equivalent to the interest accumulated between programmed instalments.

Income-Sensitive Repayment Plan:

Monthly payments are calculated according to your annual income and the amount borrowed. As your income increases or decreases, so will your monthly payments. But each payment must be at least equal to the interest accumulated between payments.

Extended Repayment Plan:

This is offered to new borrowers within the FFEL Program who obtained their first loan after October 7th, 1998 and whose combined FFEL debt is over USD 30000. Under this Plan, their new payments will be fixed or will gradually increase over 25 years.

Just like on Direct Loans, gradual repayment with increasing monthly amounts over the repayment period may mean that you get easier to pay instalments, but in the end you’ll be paying more because you’ll have more interest money to repay