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| Repayment |
• Standard repayment This kind of repayment has the lowest total interest cost. Each month for up to a 10-year repayment term you make both principal and interest payments.
• Graduated repayment This kind of repayment offers you higher total loan cost than Standard Repayment. Early years of repayment you make reduced payments and in the end your payments increased. You have to pay off the loans within the maximum 10-year period.
• Income-sensitive repayment Income-sensitive repayment need a higher total loan cost than standard repayment. Payments depend on your income because they are a percentage of your gross income. Every year you must reapply for this plan and payments are fixed annually to reflect changes in income.
• Extended repayment Extended repayment is for those who have high student loan debt. They can have a 25-year repayment term and choose standard or graduated payments to keep payments affordable. Extended repayment need a higher total loan cost than standard repayment.
• Parent's PLUS loan cannot be consolidated with the student's Stafford and Perkins Loans, because the borrowers are different. But parents who have their own Stafford loans can consolidate them together with any PLUS loans they have borrowed to pay for their children's education.
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