Same payment amount each month for the duration of your repayment. Your Stafford, unsubsidized Stafford, or PLUS loan will be set up with a standard repayment schedule unless you request otherwise. This is the least expensive plan in the long run.

First two years are interest-only payments. Payment amount increases every two years. Payment amount is initially less than with level repayment, but becomes significantly greater.

Level or graduated repayment for up to 25 years. You may choose this option if you have at least $30,000 of Stafford, unsubsidized Stafford, PLUS or consolidation debt and your first loan was disbursed on or after Oct. 7, 1998.

Minimum monthly payment of interest only for up to five years, based upon your income and loan amount. You must provide income documentation annually. Following the income-sensitive repayment period, you return to a level or graduated repayment schedule. Total repayment is 15 to 30 years, depending on your loan type and principal balance. Because you are not repaying any loan principal for up to five years, this option can be very costly in the long run.

Your monthly loan payments are limited to a percentage of your annual income (includes spouse’s income and spouse’s eligible federal student loan debt, if filed jointly). Monthly payments are adjusted annually, based on changes in income and family size. To be eligible for IBR, you must qualify for a reduced payment.
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At VSAC’s discretion, we can agree to reduce your payments for up to one year at a time. These payments can be any amount and are based upon your individual situation. This option can help you successfully manage your budget and credit report in the short run.