saltmoney.org

Already Have An Account?

Please provide a valid email that is no more than 64 characters long.
Forgot your password?
Don't have an account? SIGN UP HERE!

One More Thing ...

Please confirm the following before we create your account.

First NameLast NameYear Of Birth

Is this information correct?

  

We're Sorry ...
Unfortunately, you are ineligible to join SALT™ at this time.
This window will close automatically.

Forgot Your Password?

Just give us your email address.

Please provide a valid email that is no more than 64 characters long.

Still need help? Contact Us

Thank you.

Please check your email for password reset instructions.


All Done

30 Seconds. One Smart Step.

Create Your Free Account

Please enter your name.
Please enter your name.
Please provide a valid email that is no more than 64 characters long.
Your password should be between 8 and 32 characters long.

Please select your year of birth.
Please select your graduation year.
This field is required.
Need some help? Contact UsAlready registered? Log in here.

Creating your account...

  •  5m.
  • Save
 (35)

    Repay, Your Way

    Updated: January 28, 2013

    What You’ll Learn

    • Payment plans that can lower your monthly payment.
    • Benefits and disadvantages of different plans.
    • How to apply.

    Food at a restaurant with bill.

    If you have federal student loans and are not in default, you generally have the option to change your repayment plan. Repayment options vary depending on your situation—some even let you lower payments based on your income and family size.

    Your First Option: Standard Repayment

    When you first start repayment, you automatically enter this plan where you make the same monthly payment for 10 years. The best part about standard repayment is that you pay off your loan faster—so you pay less overall. However, it does mean that your monthly payments are higher:

    Repaying with standard repayment

    Depending on your financial circumstances and repayment plan, your monthly payment may go up over time. The repayment period will vary for each repayment plan. To find out how long you will be making payments under this repayment plan and how we came up with these numbers, check out the bottom of the page.

    Remember, the faster you pay off the loan, the less interest builds up.

    The Total Cost Of Your Loan

    What you pay back on standard repayment

    The repayment period will vary for each repayment plan. To find out how long you will be making payments under this repayment plan and how we came up with these numbers, check out the bottom of the page.

    As you can see, paying a higher monthly amount can really lower the total cost of your loan.

    More about standard repayment

    Options Based On Income

    Depending on your financial circumstances and repayment plan, your monthly payment may go up over time. The repayment period will vary for each repayment plan. To find out how long you will be making payments under this repayment plan and how we came up with these numbers, check out the bottom of the page.

    Income-Based Repayment (IBR)

    If you can't afford standard repayment, consider income-based repayment (IBR), which can lower your payment based on your income and family size. While not everyone qualifies (you need to prove economic hardship), IBR generally decreases your monthly bill.

    Initial Monthly Payment Under IBR

    Repaying with IBR

    Depending on your financial circumstances and repayment plan, your monthly payment may go up over time. The repayment period will vary for each repayment plan. To find out how long you will be making payments under this repayment plan and how we came up with these numbers, check out the bottom of the page.

    For example, a single person with an income of $25,000 per year and $35,000 of student loans would pay about $104 per month.

    The Total Cost Of Your Loan

    Total cost of your loan under IBR

    The repayment period will vary for each repayment plan. To find out how long you will be making payments under this repayment plan and how we came up with these numbers, check out the bottom of the page.

    Also, but if you haven't paid everything off after 25 years under IBR, the rest of the debt is forgiven. That makes the cost of your loan much cheaper! Just don’t forget that this amount is taxable.

    More IBR and how to apply

    Pay As You Earn

    If you've been watching the news, you may have heard of the brand new Pay As You Earn repayment plan. The details of this are very similar to IBR, with a few differences. For starters, only brand new borrowers can qualify.

    More about Pay As You Earn

    Income-Sensitive And Income-Contingent Repayment (ISR And ICR)

    Like IBR, these two plans can lower your payments, qualifying for each and the amount you pay will be slightly different.

    Income-Contingent Repayment (ICR) ICR works similarly to IBR, except your monthly payments may be slightly higher. Under IRC:

    • Only Direct loans or Consolidation loans (Consolidation loans may include Parent PLUS loans) qualify.
    • Your monthly payment will be lowered.
    • After 25 years, your remaining Direct loan balance is forgiven.

    Income-Sensitive Repayment (ISR) is very different from ICR and IBR. You can only use ISR for a maximum of 5 years — then you have to switch. For ISR:

    • Only FFELP loans qualify.
    • Your monthly payment will be lowered for up to 5 years (between 4%-25% of your discretionary income).
    • After your 5 years are up, you have up to 10 years to finish paying off your loan.

    More about ISR

    Other Repayment Options

    Graduated Repayment

    If you want lower payments right now, but don’t want to make payments for the next 15-25 years, graduated repayment might be the option for you.

    With graduated repayment, you don’t need to provide your income information.

    • Graduated repayment is available for all federal student loans.
    • Your monthly payment will be lowered during the first couple years of repayment—but after that it’ll go up significantly.
    • You finish paying off your loan in 10 years (120 payments).

    More about graduated repayment

    Extended Repayment

    If you have a lot of federal student loan debt (more than $30,000), but you don’t qualify for low payments under IBR or ICR, extended repayment may be your only option.

    • Extended repayment is available for FFELP, Direct, and Consolidated loans.
    • Your monthly payment will be reduced so you pay one low amount for a longer period of time.
    • You can have up to 25 years to pay back your loan (300 payments).

    Showing Our Work

    To come up with the numbers in the charts above, we used the following information:

    Original Amount Owed$35,000
    Interest Rate6.8%
    Annual Income$25,000
    Monthly Income$2,083
    Family Size1
    Repayment PeriodVaries by chart

    Find out more about repayment options and ways to manage your student loans with the SALT™ Repayment Navigator.

    Actualizado: 28 enero 2013

    Food at a restaurant with bill.

    Was This Useful?

      Related

      Join The Discussion

      Gain The Money Knowledge To Spend And Save With Confidence

      Join SALT™ to access this page, as well as exclusive financial tips, tools, and more.

      Sign Up For Free!
      Already a SALT member? Log in here.

      Enrollment Status And School ID

      Please enter a valid reporting id.
      x