Financial Aid
Repayment
After you graduate, leave school, or drop below half time enrollment (6 hours), you have a six-month grace period before repayment begins. During the grace period on a subsidized loan, you don't have to pay any principal and you won't be charged interest. During the grace period on an unsubsidized loan, you don't have to pay any principal, but you will be charged interest. As mentioned, you can either pay the interest or it will be capitalized.
Your lender will send you information about repayment, and you'll be notified of the date repayment begins. However, you are responsible for beginning repayment on time, even if you don't receive this information. Failing to make payments on your loan can lead to default.
The repayment periods for Stafford Loans vary from 10 to 30 years depending on which repayment plan you choose. When it comes time to repay, you can pick a repayment plan that's right for you:
- A 10-year Standard Plan with a minimum monthly payment of $50;
- An Extended Plan that allows you to repay your loan over a longer period;
- A Graduated Plan with a monthly payment that starts out low and then increases gradually during the repayment period; or
- An Income Sensitive Plan that adjusts your monthly payment up or down every year based on your annual salary. With this plan, it is possible to extend your repayment period beyond 10 years.
Sample Repayment Amounts
| Loan Amount |
Minimum Monthly Payment |
Years in Repayment |
Total Interest Paid |
Total Amount Paid |
| $2,500 |
$50 |
5.1 |
$579 |
$3,079 |
| $3,000 |
$51 |
6.3 |
$841 |
$3,841 |
| $5,000 |
$61 |
10 |
$2,360 |
$7,360 |
| $7,500 |
$92 |
10 |
$3,539 |
$11,039 |
| $10,000 |
$123 |
10 |
$4,718 |
$14,718 |
| $12,500 |
$153 |
10 |
$5,898 |
$18,398 |
| $15,000 |
$184 |
10 |
$7,078 |
$22,078 |
| $20,000 |
$245 |
10 |
$9,437 |
$29,437 |
| $23,000 |
$282 |
10 |
$10,852 |
$33,852 |