Repayment Plans adaptable to your needs

Current Payment Option
Want to fix your rate, but don't want to extend your term?

Originally the federal consolidation program was created to cut monthly payments for recent college graduates. Today, anyone who holds outstanding student loans should consolidate due to the rock bottom interest rates.

Since there are no prepayment penalties, you can continue with your ten-year term while at the same time fix to the current low rates.

Need to Cut Monthly Payments?

If making monthly payments is too stressful on your monthly budget, the following are estimated payments after using this program:

Loan Amount	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000
Estimated Current Payment*	$231	$346	$462	$577	$693	$808
Estimated New Payment*	$154	$230	$280	$349	$394	$460
Available Money	$77	$116	$182	$228	$299	$348

*All payments are estimated using a 6.875% interest rate. If you would like to find out what your specific estimated payment or interest rate is please call and speak to one of our Student Loan Finance Specialists.

Five repayment plans are available with Federal Loan Consolidation:

1Standard Repayment Plan: This plan allows for standard, equal monthly payments. The length of the term depends on the loan balance (see chart below). There is no prepayment penalty if you pay early.

22-Year Graduated: This is a good option for recent graduates. Payments start out small for the first two years and gradually increase over the course of the repayment period. Selecting this repayment option may increase your overall interest costs.

3Income-Sensitive: This plan establishes payments annually based on your expected monthly income. Wage documentation must be provided before a repayment schedule can be determined. Selecting this option may increase your total interest costs over the term of the loan.

4Extended Repayment: If your loans exceed $30,000 you have the option of extending repayment over a 25 year term with either the fixed or graduated payment plan. If you have at least $40,000 in debt you qualify for a 25 year repayment plan.

5Four Year Graduated Plan: This plan is well suited for you if your immediate earnings are low and are anticipated to stay low for a few years, but are expected to increase steadily over the years ahead.

Repayment Guidelines

Depending on the total amount of your consolidation loan, the government has set the following repayment periods:

Loan Balance Range	Maximum Repayment Period
$10,000 - $19,999.99	15 years
$20,000 - $39,999.99	20 years
$40,000 - $59,999.99	25 years
$60,000 and above	30 years

Boost Your Credit Rating

Consolidating your federal loans will greatly improve your credit score. Your monthly debt-to-income ratio will improve, and your total number of loans outstanding loans will be lowered. Both help your credit score.