EDU Loan Support

Available Programs for Students to pay off their Student Debts

Standard Repayment

With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you’ll have up to 10-30 years to repay your loans. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time.

Graduated Repayment

With this plan, your payments start out low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.

Income Based Repayment (IBR)

Income Based Repayment is a new repayment plan for the major types of federal loans made to students. Under IBR, the required monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly repayment amount under IBR will be less than the monthly amount calculated under a 10-year standard repayment plan.

If you repay under the IBR plan for 25 years and meet other requirements you may have any remaining balance  of your loan(s) cancelled. Additionally, if you work in public service and have reduced loan payments through IBR, the remaining balance after ten years in a public service job could be cancelled.

Income Contingent Repayment (ICR)

This plan gives you the flexibility to meet your Direct Loans obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you’re married), family size, and the total amount of your

Direct Loans.

Under the ICR plan you will pay each month the lesser of:

1. The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or

2. Twenty percent of your monthly discretionary income. If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized (added to the loan principal). The maximum repayment period is 20 years. If you haven’t fully repaid your loans after 20 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged. As of July 1, 2009, graduate and professional student Direct PLUS Loan borrowers are eligible to use the ICR plan. Parent Direct PLUS Loan borrowers are not eligible for the ICR repayment plan.

PAYE

PAYE is Pay As You Earn?

Pay As You Earn is a repayment plan for eligible Direct Loans that is designed to limit your required monthly payment to an amount that is affordable based on your income and family size.

What federal student loans are eligible to be repaid under the Pay As You Earn plan?

Only loans made under the Direct Loan Program are eligible for repayment under Pay As You Earn.

Who is eligible for Pay As You Earn?

You must be a new borrower. You are a new borrower if you had no outstanding balance on a Direct Loan or

FFEL Program loan as of Oct. 1, 2007, or if you had no outstanding balance on a Direct Loan or FFEL Program loan when you received a new Direct Loan or FFEL Program loan on or after Oct. 1, 2007. In addition, you must have received a disbursement of a Direct Subsidized Loan, Direct Unsubsidized Loan, or Direct PLUS

Loan for graduate or professional students on or after Oct. 1, 2011, or you must have received a Direct Consolidation Loan based on an application that was received on or after Oct. 1, 2011.

What are the benefits of Pay As You Earn?

1. LOWER SCHEDULED MONTHLY PAYMENT: Under Pay As You Earn, your monthly payment amount will be less than the amount you would be required to pay under a 10-year Standard Repayment

Plan, and may be less than under other repayment plans.

1. INTEREST PAYMENT BENEFIT: If your monthly Pay As You Earn payment amount does not cover the full amount of interest that accrues on your loans each month, the government will pay your unpaid accrued interest on your Direct Subsidized Loans (and on the subsidized portion of your Direct Consolidation Loans) for up to three consecutive years from the date you begin repaying your loans under Pay As You Earn.

20-YEAR CANCELLATION:

EXTENDED

Who is eligible?

If you’re a Direct Loan borrower, you must have had no outstanding balance on a Direct Loan as of October 7, 1998, or on the date you obtained a Direct Loan after October 7, 1998, and you must have more than $30,000 in outstanding Direct Loans.

What are the benefits?

Under this plan, your monthly payments are:

• A fixed or graduated amount,

• Made for up to 25 years, and

• Generally lower than payments made under the Standard and Graduated Repayment Plans.

Eligible Loans

Subsidized Federal Stafford Loans

Direct Subsidized Loans

Subsidized Federal Consolidation Loans

Direct Subsidized Consolidation Loans

Federal Insured Student Loans (FISL)

Guaranteed Student Loans (GSL)

UnSubsidized and Unsubsidized Federal Stafford Loans

Direct Unsubsidized Loans, including Direct Unsubsidized Loans (TEACH) (converted from TEACH Grants)

Unsubsidized Federal Consolidation Loans

Direct Unsubsidized Consolidation Loans

Federal PLUS Loans (for parents or for graduate and professional students)

Direct PLUS Loans (for parents or for graduate and professional students)

Direct PLUS Consolidation Loans

Federal Perkins Loans

National Direct Student Loans (NDSL)

National Defense Student Loans (NDSL)

Federal Supplemental Loans for Students (SLS)

Parent Loans for Undergraduate Students (PLUS)

Auxiliary Loans to Assist Students (ALAS)

Health Professions Student Loans (HPSL)

Health Education Assistance Loans (HEAL)

Nursing Student Loans (NSL)

Loans for Disadvantaged Students (LDS)

Ineligible Loans

Loans made by a state or private lender and not guaranteed by the federal government

Primary Care Loans

Law Access Loans

Medical Assist Loans

PLATO Loan