When completing your Consolidation application, you’ll be asked to select your desired repayment schedule; you can choose from several repayment schedules to help meet your monthly payment and long-term repayment needs. You can change your repayment schedule at any time.

Most Common Payment Plans

• Same payment amount each month
• Least expensive plan

• First 24 payments are interest-only payments
• Payment amount increases every 24 payments
• Payment amount is initially less than with level repayment, but becomes significantly greater over time
• More expensive plan in the long run

Other Available Payment Plans

• Choice of level or graduated repayment plan for up to 25 years
• Available only if you have at least $30,000 of federal education debt and you took out your first loan on or after October 7, 1998

• Minimum monthly payment of interest only or 4% of monthly income, whichever is greater
• Available for up to five years; must provide income documentation annually
• Following the income-sensitive repayment period, loan returns to a level or graduated repayment schedule
• Total repayment is 15 to 30 years, depending on loan type and principal balance
• This option can be very costly in the long run