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Life Stages

Student Loan Repayment Plan Options

Standard Repayment

Standard Repayment Plan offers the lowest overall cost. When you start repaying, your student loans are automatically placed into this plan. Your monthly payment amount remains the same over the term of the loan.

Standard Repayment Provides level monthly payments that cover accruing interest and a portion of principal
Standard repayment is the most economical repayment plan.
You can change your repayment plan as your financial circumstances and goals change.

You can prepay your loan at any time without penalty

Extended Repayment

Lower your monthly payment through a lengthened repayment term.

Make monthly payments that are as low as interest-only for the first few years or monthly payments of principal and interest. With extended repayment, you may have up to 25 years to repay your federal student loans.
Remember: By lengthening your repayment term, you can lower your monthly payment, but the overall loan cost will be higher.

Eligible loan programs

Loan programs eligible for extended repayment include:

In addition, you must meet either of the following conditions:

*Terms and conditions apply. The repayment term available on your private student loans may vary depending on loan type, outstanding loan balance, repayment plan, and the terms of your promissory note.
Combined billing is available for student loans that are serviced by Sallie Mae. Some restrictions may apply.
Sallie Mae reserves the right to modify or discontinue loan programs at any time without notice.

Graduated Repayment

With graduated repayment, your monthly payments are lower at the beginning of repayment and increase over the term of the loan. You can choose to make payments as low as interest-only for up to four years. Payments for the remaining term will then be higher.

Graduated repayment allows Stafford, PLUS, and many of our private student loan borrowers to make reduced payments that may be as low as interest only for up to four years followed by standard payments of principal and interest for the remaining repayment term.
Keep in mind that reduced payments may increase the total cost since the loan principal is repaid more slowly.
Terms and conditions apply. Partial or full prepayment is allowed at any time without penalty. Eligibility for a graduated repayment plan may vary depending on loan type, interest rate, outstanding balance, and repayment time remaining.

Income Sensitive Repayment

Your payments are based on a percentage of your monthly income — from 4% to 25% — as long as you pay at least the interest that accrues every month.

Need to lower your monthly Federal Stafford, PLUS, or consolidation loan payment? Explore income-sensitive repayment as an option. Your payment must cover at least monthly accruing interest. You determine the percentage of your monthly payment: between 4% and 25% of your monthly gross income.

Because the loan is repaid more slowly, your total interest costs may be higher over the life of your loan.
To apply for income-sensitive repayment, log in to Sallie Mae's Manage Your Loans where you can apply online and request an income-sensitive repayment account. Terms and conditions apply.

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