Graduated repayment lets you lower your payments for a while—without extending your repayment period to 15 or 25 years. If you don’t make a lot of money now—but think your income will go up in the future—this plan might be right for you.
- You pay just the interest on your loan for up to 4 years. (Some servicers will increase your payments every 2 years instead.)
- Payments then increase—sometimes dramatically—but can’t be more than three times your previous payment.
- You finish making your payments in 10 years. (Same as standard repayment)
- Graduated repayment still increases the total amount of interest you pay.
In the chart below you can see how your monthly payment will go up significantly under graduated repayment, especially compared to standard and extended plans.
Stacking It Up
Here’s what your initial monthly payments could look like under graduated repayment, compared to other plans.
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.
And here’s what the total amount you’ll pay looks like.
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.
Changing Your Repayment Plan
If you’ve decided that you definitely need to lower your monthly payment, then take the following steps:
- Step 1: Review your repayment options on Salt®. Depending on the type of student loan you have, your options can vary.
- Step 2: Call your servicer: Your servicer may be able to make the change over the phone, or they may need additional information from you, such as a form.
Not sure who your servicer is? Visit NSLDS and find all of your federal student loans information, including the name of your servicer.-
To come up with the numbers above, we used the following information:
|Original Amount Owed||$35,000|