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LOAN PROGRAM OPTIONS

Learn about all of the different repayment options available to you, and form a plan of action.

Jump To Section

Repayment Programs
Income-Driven Repayment
Providing Forgiveness
Discharge Programs
Defense To Repayment

Which Repayment Plan Is Right for You?

Repayment plans determine your monthly student loan payment amount, how many years it will take to pay back what you borrowed, and how much interest you will pay over the life of your loan. The servicers (lenders) have several forms of repayment, below are their “Standard” where payments are based on debt amount.

*All loan types

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • Direct Consolidation Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • FFEL PLUS Loans
  • FFEL Consolidation Loans

Student Loan Repayment Plans

Plans Eligibility Definitions Supporting Link
STANDARD
  • ALL LOAN TYPES*
  • ALL BORROWERS

Standard repayment plans include making monthly payments over 10 years.

 

  • PAYMENTS ARE FIXED
  • 10 YEAR TERM (120 MONTHS)
  • 30 YEARS FOR CONSOLIDATED LOANS
 Link
EXTENDED FIXED
  • ALL LOAN TYPES*
  • DEBT BALANCE MUST BE GREATER THAN 30K
  • ALL BORROWERS

Extended repayment plans may be available if your total loan balance is over $30,000 in either Direct loans or FFELP, not a combination. These plans allow you to pay your loans over 25 years instead of 10. They may be good options if you need a lower monthly payment than a standard plan offers.

 

  • PAYMENTS ARE FIXED
  • EXTENDS THE 10 YEAR TERM TO 25 YEARS
  • LOWERS MONTHLY PAYMENTS
 Link
GRADUATED
  • ALL LOAN TYPES*
  • ALL BORROWERS
 Your monthly payments start lower and get larger over the repayment period, usually increasing every two years. This may be a good option if you need a lower payment now, but expect to make more money in the future. Be aware that your payments will go towards interest only—not principal—in the beginning of the repayment plan. Link
EXTENDED GRADUATED
  • ALL LOAN TYPES*
  • DEBT BALANCE MUST BE GREATER THAN 30K
  • ALL BORROWERS
 Payments can be fixed or graduated, and the plan allows you up to 25 years to repay what you owe. You will pay more in interest if you choose this route than you would on the standard plan. Link

INCOME-DRIVEN REPAYMENT PLANS

THESE REPAYMENT PLANS ALLOW YOU TO MAKE MONTHLY PAYMENTS THAT ARE BASED ON THE BORROWER’S DISCRETIONARY INCOME* IN ADDITION TO YOUR INCOME, ELIGIBILITY FOR THESE PLANS IS BASED ON YOUR FAMILY SIZE AND THE TYPES OF LOANS YOU HAVE. These plans also extend your repayment period to 20 or 25 years. If you still have a balance after all that time, the government will forgive your remaining balance.
* Discretionary income is the difference between your income and 150 percent of the poverty guideline for your family size and state of residence.

All four plans adjust your monthly student loan payments based on your income.

Student Loan Repayment Plans

Plans Eligibility Definitions Supporting Link
PAY AS YOU EARN (PAYE)
  • ONLY “DIRECT” LOANS ARE ELIGIBLE
  • EXCLUDES PARENT PLUS LOANS
  • ALL LOANS HAVE HAD TO BE DISBURSED ON OR AFTER OCTOBER 1, 2007

MONTHLY PAYMENTS ARE CALCULATED BY 10% OF DISCRETIONARY INCOME

 

  • 20 YEAR TERM (240 MONTHS
  • PAYMENTS ARE RECALCULATED ANNUALLY ACCORDING TO ANNUAL ADJUSTED (AGI) GROSS INCOME AND FAMILY SIZE

{AKA – RE-CERTIFICATION}

  • ALL REMAINING PRINCIPAL AND INTEREST WILL BE FORGIVEN AT THE END OF TERM

*IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY

 Link
REVISED PAY AS YOU EARN (REPAYE)
  • ONLY “DIRECT” LOANS
  • EXCLUDES PARENT PLUS LOANS
  • LOAN DISBURSED DATE IS NOT LIMITED

MONTHLY PAYMENTS ARE CALCULATED BY 10% OF DISCRETIONARY INCOME

 

  • 25 YEAR TERM (300 months)
  • ANNUAL RE-CERTIFICATION REQUIRED
  • DEBT BALANCE NOT PAID DURING TERM GETS FULLY FORGIVEN

* IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY

 Link
INCOME BASED REPAYMENT (IBR)
  • ALL LOAN TYPES ARE ELIGIBLE
  • ALL PLUS LOANS ARE ELIGIBLE
  • EXCLUDES ALL CONSOLIDATED LOANS THAT INCLUDE PARENT PLUS LOANS

MONTHLY PAYMENTS ARE CALCULATED BY 15% OF DISCRETIONARY INCOME

 

  • 20-25 YEAR TERM
  • ANNUAL RE-CERTIFICATION REQUIRED
  • DEBT BALANCE NOT PAID DURING TERM GETS FULLY FORGIVEN

* IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY

 Link
INCOME-CONTINGENT REPAYMENT (ICR)
  • ALL “DIRECT” LOAN TYPES
  • INCLUDES PARENT PLUS LOANS
  • ALL BORROWERS

MONTHLY PAYMENTS ARE CALCULATED BY 10% OF DISCRETIONARY INCOME

 

  • 25 YEARS (300 MONTHS)
  • YEARLY RE-CERTIFICATION
  • DEBT BALANCE NOT PAID DURING TERM, GETS FULLY FORGIVEN AT THE END OF THE TERM

* IF MARRIED, SPO– USE INCOME AND FEDERAL LOAN DEBT WILL BE CONSIDERED ONLY IF FILING TAXES JOINTLY

 Link

Providing Forgiveness

THESE ARE DIFFERENT SERVICES THAT CAN BE RENDERED TO BE ABLE TO ENROLL CLIENTS INTO A FORGIVENESS (IDR) PLAN

Service Information Needed Must Know Supporting Link
CONSOLIDATION
  • LOAN DETAILS
  • BORROWER MUST HAVE MORE THAN ONE DIRECT CONSOLIDATED LOAN (SUB & UNSUB)
  • A DIRECT CONSOLIDATION LOAN ALLOWS YOU TO CONSOLIDATE (COMBINE) MULTIPLE FEDERAL EDUCATION LOANS INTO ONE LOAN.THE RESULT IS A SINGLE MONTHLY PAYMENT INSTEAD OF MULTIPLE PAYMENTS.
  • LOAN CONSOLIDATION CAN ALSO GIVE YOU ACCESS TO ADDITIONAL LOAN REPAYMENT PLANS AND FORGIVENESS PROGRAMS.
  • WE CAN ONLY CONSOLIDATE LOANS OUT OF DEFAULT, IF THEY ARE GOING TO BE PLACED ON AN INCOME DRIVEN REPAYMENT PROGRAM
 Link
IDR REQUEST
  • ANNUAL ADJUSTED GROSS INCOME
  • REFERENCES
  • THIS SERVICE IS ONLY COMPLETED WHEN LOANS HAVE ALREADY BEEN CONSOLIDATED; BUT THEY ARE NOT CURRENTLY UNDER AN INCOME DRIVEN PLAN
  • DEBT DOES NOT TRANSFER OUT FROM CURRENT LENDER
 Link
PROGRAM CHANGE

FROM IBR TO ANOTHER IDR PLAN

FROM ONE INCOME DRIVEN PLAN TO ANOTHER

EX: REPAYE/PAYE TO ICR/IBR ETC.
  • LOANS ARE ALREADY CONSOLIDATED
  • DEBT BALANCE DOES NOT TRANSFER AWAY FROM CURRENT LENDER
 Link
RE-CERTIFICATION
  • IDR ANNIVERSARY DATE
  • ENROLLMENT MUST BE A MAXIMUM OF 4 MONTHS BEFORE ANNIVERSARY DATE
 YOUR LOAN SERVICER WILL SEND YOU A REMINDER NOTICE WHEN IT’S TIME FOR YOU TO RECERTIFY. YOU WILL NEED TO PROVIDE UPDATED INCOME INFORMATION Link
RECALCULATION UPDATED INCOME INFORMATION
  • THIS CAN BE SUBMITTED AT ANY TIME, AS MANY TIMES AS NEEDED
  • IT’S AN ATTEMPT TO GET MONTHLY PAYMENTS RE-ADJUSTED WITHIN THE SAME REPAYMENT PLAN
 Link
PUBLIC SERVICE LOAN FORGIVENESS (PSLF)
  • Government organizations at any level (federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • Other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services
  • For PSLF, you are generally considered to work full-time if you meet your employer’s definition of full-time or work at least 30 hours per week, whichever is greater.
  • Only Direct Loans are eligible for PSLF

 The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Link

FORGIVENESS, CANCELLATION, AND DISCHARGE

IN VERY SPECIFIC CASES, BORROWERS CAN GET THEIR FEDERAL STUDENT DEBT DISMISSED BY MEETING CERTAIN CRITERIA

DISABILITY DISCHARGE Qualifications Outcome Supporting Link
  • DIRECT, FFEL, AND PERKINS LOANS QUALIFY
  • ONCE DISCHARGE REQUEST IS SUBMITTED, THERE IS A 120 DAY HOLD PLACED ON ALL LOANS. DURING THIS TIME, NO PAYMENTS ARE REQUIRED TO BE MADE TOWARDS DEBT (STOPPED COLLECTIONS UNTIL VERDICT IS REACHED).
  • U.S. DEPT OF VETERAN AFFAIRS (VA) CERTIFICATION DETERMINING THE BORROWER AS UNEMPLOYABLE DUE TO A SERVICE-CONNECTED DISABILITY
  • SOCIAL SECURITY DISABILITY INSURANCE (SSDI) OR SUPPLEMENTAL SECURITY INCOME (SSI) AWARD LETTER/PROOF OF BENEFITS STATING THAT NEXT SCHEDULED DISABILITY REVIEW WILL BE NO SOONER THAN 5-7 YEARS FROM THE DATE OF THE BORROWERS MOST RECENT SSA DISABILITY DETERMINATION
  • DOCTOR’S SIGNATURE STATING THAT BORROWER IS UNABLE TO ENGAGE IN SUBSTANTIAL ACTIVITY DUE TO MEDICALLY DETERMINED IMPAIRMENT
  • IMPAIRMENT HAS LASTED A CONTINUOUS PERIOD OF AT LEAST 60 MONTHS OR EXPECTED TO BE AT LEAST 60 MONTHS
  • ONCE APPROVED: LOANS WILL BE DISCHARGED; ANY PAYMENTS MADE INTO THE DEBT, FROM “DISABILITY DATE” WILL BE REFUNDED TO THE BORROWER
  • ONCE APPROVED: ALL FEDERAL DEBT GETS TRANSFERRED TO NELNET FOR DISCHARGE
  • ANY PAYMENTS MADE TOWARDS DEBT BALANCE, FROM “DISABILITY DATE” WILL BE REFUNDED TO THE BORROWER
  • THERE IS A 3 YEAR, POST-DISCHARGE, MONITORING PERIOD WHERE THE BORROWER APPLYING FOR THE DISCHARGE IS NOT ALLOWED TO EARN EMPLOYMENT INCOME THAT EXCEEDS THE POVERTY GUIDELINE FOR A FAMILY OF 2, IN THE STATE OF RESIDENCE
 Link

 

IF DENIED

BORROWER WILL RECEIVE NOTIFICATION VIA POSTAL MAIL EXPLAINING WHY HE/SHE WAS DENIED AND HOW A RE-EVALUATION CAN BE REQUESTED
SCHOOL CLOSURE Qualifications Approval Supporting Link
  • DIRECT, FFEL, AND PERKINS
  • SCHOOL CLOSED WHILE BORROWER WAS ENROLLED; INCLUDING APPROVED LEAVE OF ABSENCE
  • BORROWER WAS UNABLE TO COMPLETE PROGRAM DUE TO SCHOOL CLOSING
  • SCHOOL CLOSED WITHIN 120 DAYS AFTER BORROWER WITHDREW
  • IF THE APPLICANT RECEIVED A DIPLOMA/CERTIFICATE FROM THE SCHOOL, BUT DID NOT COMPLETE THE PROGRAM OF STUDY, THEY WILL NOT BE DISQUALIFIED IF ALL OTHER REQUIREMENTS ARE MET.
  • SCHOOL CLOSED WHILE BORROWER WAS ENROLLED; INCLUDING APPROVED LEAVE OF ABSENCE
  • BORROWER WAS UNABLE TO COMPLETE PROGRAM DUE TO SCHOOL CLOSING
  • SCHOOL CLOSED WITHIN 120 DAYS AFTER BORROWER WITHDREW
  • IF THE APPLICANT RECEIVED A DIPLOMA/CERTIFICATE FROM THE SCHOOL, BUT DID NOT COMPLETE THE PROGRAM OF STUDY, THEY WILL NOT BE DISQUALIFIED IF ALL OTHER REQUIREMENTS ARE MET.
  • DEBT BALANCE IS DISCHARGED
  • VOLUNTARY PAYMENTS MADE TOWARDS DEBT, OR THROUGH FORCED COLLECTIONS WILL BE REIMBURSED
  • ALL CREDITS OR CERTIFICATIONS EARNED, WILL BE NULL AND VOID
 Link
  • IF CREDITS WERE TRANSFERRED TO A DIFFERENT SCHOOL, BUT NOT COMPLETING THE SAME PROGRAM INITIALLY ENROLLED INTO, FROM THE CLOSED SCHOOL
  • ONLY THE LOANS FROM THE CLOSED SCHOOL WILL BE DISCHARGED IN THIS CASE
  • LOANS FROM INCOMPLETE PROGRAMS OF STUDY IF MULTIPLE SCHOOLS WERE ATTENDED
DISQUALIFICATIONS DENIAL
  • BORROWER COMPLETED PROGRAM, EVEN IF THEY DIDN’T RECEIVE A DIPLOMA OR CERTIFICATE
  • CURRENTLY/HAVE COMPLETED A COMPARABLE PROGRAM AT A DIFFERENT SCHOOL (TEACH-OUT AGREEMENT OR TRANSFERRING CREDITS/HOURS FROM CLOSED SCHOOL)
  • WITHDREW FROM SCHOOL MORE THAN 120 DAYS BEFORE SCHOOL CLOSED
  • DISCHARGE CAN NOT BE SUBMITTED FOR RE-EVALUATION ONCE DENIED
  • CONTACT STATE LICENSING AGENCY ABOUT TUITION RECOVERY FUND OR PERFORMANCE BOND
  • IF THE SCHOOL FILED BANKRUPTCY, A CLAIM CAN BE FILED FOR ANY LOSS THE BORROWER EXPERIENCED THROUGH BANKRUPTCY PROCEEDINGS
  • LEGAL CONSULTATION FOR COURT SYSTEM OPTIONS

BORROWERS DEFENSE TO REPAYMENT.

THIS PROCESS WILL GET LOAN DISMISSAL BY SUBMITTING A CLAIM AND EVIDENCE THAT PROVES AN EDUCATIONAL INSTITUTION VIOLATED FEDERAL REGULATIONS/LAWS; THEREFORE THE STUDENT/BORROWER SHOULD NOT HAVE TO BE FORCED TO REPAY FUNDS RELEASED FOR AN EDUCATION THAT WASN’T OBTAINED

BORROWER’S DEFENSE TO REPAYMENT

Overview Supporting Documents Outcome Supporting Link
  • DIRECT AND FFEL LOANS ARE ELIGIBLE
  • ALL BORROWERS WHO FEEL MISLED BY THE SCHOOL ATTENDED
  • IF THE SCHOOL, THROUGH ACT OR OMISSION, VIOLATED STATE LAWS DIRECTLY RELATED TO YOUR FEDERAL STUDENT LOAN OR TO THE EDUCATIONAL SERVICES FOR WHICH THE LOAN IS PROVIDED
  • BORROWERS ARE TO CONTINUE TO MAKE SCHEDULED PAYMENTS TOWARDS DEBT, UNTIL THEY RECEIVE THE NOTIFICATION OF FORBEARANCE BEING PLACED; ALL COLLECTIONS DUE TO DELINQUENCY ARE STOPPED AT THAT POINT
  • ONE CLAIM IS FILED PER SCHOOL ATTENDED
  • DOCUMENTS THAT CONFIRM YOUR ATTENDANCE TO THE SCHOOL STATED IN CLAIM, PROGRAM OF STUDY, DATES OF ENROLLMENT
    • TRANSCRIPTS
    • ENROLLMENT AGREEMENT
    • REGISTRATION DOCUMENTS
  • PROMOTIONAL MATERIAL FROM THE SCHOOL
  • EMAILS WITH SCHOOL OFFICIALS
  • SCHOOL’S MANUAL OR COURSE CATALOG
  • PROCESS TAKES UP TO 12 MONTHS
  • IF APPROVED, ALL LOANS DISBURSED FOR THE APPROVED SCHOOL CLAIM WILL BE DISCHARGED
  • ALL VOLUNTARY PAYMENTS MADE TOWARDS THE DISCHARGED DEBT WILL BE REIMBURSED
 Link

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