Federal Loan Repayment Plans
How to Repay Your Federal Direct Loans and Federal Family Education Loan (FFEL) Program Loans
Reference: https://studentaid.gov/manage-loans/repayment/plans
Repayment Plan | Eligible Loans | Monthly Payment and Time Frame | Quick Comparison |
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Repay Your Federal Perkins Loan
Reference: https://studentaid.gov/understand-aid/types/loans/perkins
Please note: The Federal Perkins Loan program has ended. No Federal Perkins loans can be made to any student on or after October 1, 2017.
Perkins Loan repayment plan options are not the same as those for Direct Loan Program or FFEL Program loans. It important to know how much you have accumulated in student loan debt. To monitor all of your federal student loans, you may access the National Student Loan Data System (NSLDS) online at studentaid.gov/ or call toll-free 800.999.8219. Students must complete a Perkins Exit Test, which reviews terms and conditions of taking out the Perkins loan, as well as reviews the Perkins loan repayment plan and schedule; students are provided with an individual repayment schedule.
Your repayment schedule will provide you with the interest rate, payment amounts, and payment methods. The chart below shows sample loan amounts and monthly payments based on the 5 percent interest rate:
Amount Borrowed | Monthly Payment | Number of Payments | Total Amount Paid |
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$1,500 | $40 | 41 | $1,640 |
$3,500 | $40 | 109 | $4,362 |
$5,500 | $58.34 | 120 | $7,000.80 |
$6,500 | $68.94 | 120 | $8,272.80 |
$7,500 | $79.55 | 120 | $9,546 |
$8,500 | $90.16 | 120 | $10,819.20 |
$10,000 | $106.70 | 120 | $12,728.40 |
$12,500 | $132.58 | 120 | $15,909.60 |
$15,000 | $159.10 | 120 | $19,092 |
$20,000 | $212.13 | 120 | $25,455.60 |
$27,500 | $291.39 | 120 | $35,001.60 |
$60,000 | $636.39 | 120 | $76,366.80 |
Contact the Office of Financial Aid for more information on Perkins Loan repayment plans.
Consolidate Your Loans
Reference: https://studentaid.gov/app/launchConsolidation.action
If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan. This may simplify repayment if you are currently making separate loan payments to different loan holders or servicers, as you'll only have one monthly payment to make. There may be trade-offs, so you'll want to learn about the advantages and possible disadvantages of consolidation before you consolidate.
Should I consolidate my loans?
The answer depends on your individual circumstances:
Pros
- If you currently have federal student loans that are with different loan servicers, consolidation can greatly simplify loan repayment by giving you a single loan with just one monthly bill.
- Consolidation can lower your monthly payment by giving you a longer period of time (up to 30 years) to repay your loans.
- If you consolidate loans other than Direct Loans, it may give you access to additional income-driven repayment plan options and Public Service Loan Forgiveness. (Direct Loans are from the William D. Ford Federal Direct Loan Program.)
- You'll be able to switch any variable-rate loans you have to a fixed interest rate.
Cons
- Because consolidation usually increases the period of time you have to repay your loans, you might make more payments and pay more in interest than would be the case if you don't consolidate.
- Consolidation may also cause you to lose certain borrower benefits—such as interest rate discounts, principal rebates, or some loan cancellation benefits—that are associated with your current loans.
- If you're paying your current loans under an income-driven repayment plan, or if you've made qualifying payments toward Public Service Loan Forgiveness, consolidating your current loans will cause you to lose credit for any payments made toward income-driven repayment plan forgiveness or Public Service Loan Forgiveness.
- If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief, or consider switching to an income-driven repayment plan.
- Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist.