Direct Loan Payment Plans

There are several repayment plans: standard, extended, graduated and income contingent. How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. Consolidation loans also have varying repayment plans. Use the links below to determine your repayment amounts under each of the different plans. Effective July 1, 2009, there will be a new repayment plan (Income-based Repayment).

Standard Repayment Plan

The Standard Repayment Plan requires you to pay a fixed amount each month — at least $50 — for up to 10 years. The length of your repayment period will depend on your loan amount.

Extended Repayment Plan

The Extended Repayment Plan allows you to repay your loan over a period that is generally 12 to 30 years, depending on your loan amount. Your monthly payment might be lower than it would be if you repaid the same total loan amount under the Standard Repayment Plan, but you'll repay a higher total amount of interest over the life of your loan because the repayment period is longer. The minimum monthly payment is $50.

Graduated Repayment Plan

Under the Graduated Repayment Plan, your payments will be lower at first and then increase, usually every two years. The length of your repayment period will generally range from 12 to 30 years, depending on your loan amount. Your initial monthly payments will be equal to either the interest that accumulates on your loan between payments or half the payment you would make each month using the Standard Repayment Plan, whichever is greater. However, your monthly payments will never increase to more than 1.5 times what you would pay under the Standard Repayment Plan. You'll repay a higher total amount of interest, though, because the repayment period is longer than it is under the Standard Repayment Plan.

Income Contingent Repayment Plan

The Income Contingent Repayment Plan bases your monthly payment on your yearly income, family size, interest rate and loan amount. As your income rises or falls, so do your payments. After 25 years, any remaining balance on the loan will be forgiven, but you will have to pay taxes on the amount forgiven.

See Also

Exit Interview

You can participate in your Direct Loan Exit Interview by clicking here.

If you have further questions, contact the Direct Loan Department at Brooklyn College at 718.951.4785.