The Graduate Student Loan Repayment plan allows you to make income-based payments that steadily increase over time.
If you don’t make a lot of money now, but expect to continually increase your income, this could be the right payment plan for you.
What is the graduate student loan repayment plan?
The graduate student loan repayment plan is available to students who have the William D. Ford Federal Direct Loan Program or Federal Family Education Loan (FFEL) Programs. That includes loans like Direct subsidized and unsubsidized loans, consolidation loans, and more. Loans options include:
- Direct subsidized loans
- Direct unsubsidized loans
- Direct PLUS loans
- Direct consolidation loans
- Subsidized Federal Stafford loans
- Unsubsidized Federal Stafford loans
- FFEL PLUS loans
- FFEL consolidation loans
The repayment plan is designed to help students as their career progresses and they begin to make more money.
If you have a graduate repayment plan, your payments start out low and increase every two years based on your income. Payments are made for up to 10 years unless you have a consolidation loan.
Payments will never be less than the amount of interest that accrues between payments and will never be more than three times greater than any other payment.
Are they available for consolidation loans?
Yes, graduate repayment plans are available for both the Direct Consolidation Loan and the FEEL Consolidation Loan, though it works slightly differently with these.
The main difference with the consolidation loan is the payment period, which could be 10-30 years depending on the amount of student loan debt you have.
How do I apply for a graduate loan repayment plan?
To apply for this repayment plan, you need to contact your student loan servicer (the company that handles the payments for your loan). They can determine if you qualify for the graduate repayment plan or other additional plans available through federal programs.
If you have any questions about financial aid, reach out to us at firstname.lastname@example.org.