Repayment Terms

The repayment term on a consolidated loan ranges from 12 to 30 years depending on the total amount of your student loans.

Note: You may always prepay your loan with no penalties at any time to reduce your total loan cost.

Repayment Options

You may choose one of several repayment options for your consolidation loan. The repayment term ranges from 12 to 30 years depending on the total amount of your student loans.

Level Repayment

A level repayment schedule means you pay equal monthly payments over the term of your loan. This is our standard and most popular repayment option.

Graduated Repayment Plan

This option allows for low, interest-only minimum payments for either the first 2 or 4 years of your repayment period. A level repayment plan is calculated for the remainder of the repayment term.

Income-Sensitive Repayment Plan

With this option, for the first quarter of the repayment period, you pay only interest. For the second quarter, you pay level monthly payments (on the balance) which are calculated over the original maximum payment period allowed. For the last half of your repayment period, level payments are recalculated, enabling you to pay off the remainder of the loan.

Extended Repayment

Under an extended repayment schedule, you can repay your consolidation loan over a 25-year period on a fixed or graduated payment plan if you have loans totaling between $30,000 and $39,999. If you have loans in excess of $60,000 and wish to repay over a 30-year period, you should select one of the other repayment options.

Reduce Your Monthly Payment

By extending your loan term or selecting one of our graduated repayment plans, you can lower your monthly payments by as much as 50%. If you would like additional information on any of these options please call and speak to one of our loan counselors. Remember, there is NO PENALTY for early repayment of your loan - so you can pay off the loan at any time, or simply make higher repayments when you are able. You should note that by extending your payments, your overall financial obligation may increase, because you will be making payments (principal plus interest) for a longer period of time. If you do not choose to repay your loan in full prior to the end of the extended period, the total cost of your loan will be greater than what you would have paid if you had not extended the term.

Interest Rate Information

The Federal government regulates how the fixed interest rate is determined on your consolidation loan. When you apply to consolidate your loans we are required by law to take the weighted average of the interest rates that you are currently paying on your existing Federal student loans, rounded up to the nearest one-eighth of a percent. Students currently in grace may qualify for a 4.75% interest rate. Students in repayment may qualify for an interest rate of only 5.375%. These rates apply for Stafford loans taken out since July 1, 1998.