Standard
Repayment
This is a level payment plan with regular interest and principal payments due each month. The minimum payment
is $50 a month but may be more depending on the amount borrowed
and has a maximum repayment term of 10 years. This type of repayment schedule
is highly recommended to all who can budget a level loan payment
on a monthly basis.
Graduated
Repayment
Monthly payments on this plan are lower in the beginning and
increase at 24-month intervals until the loan is repaid within the maximum
repayment term of 10 years. This type of repayment schedule
is generally recommended for professionals who cannot afford
Standard Repayment in the beginning of repayment but anticipate
their income to significantly increase over time allowing
them to make higher payments.
Income
Sensitive Repayment
This is a payment plan that is adjusted annually based on
monthly income and the total amount of student loan debt.
This type of payment can be used for a maximum of five years,
and is renewable by request every 12 months. Payments will
return to either a level or graduated
repayment plan when the Income Sensitive Repayment
period ends. The interest you will pay over the life
of the loan will be significantly higher because
of the extended repayment
term. Therefore, this is only suggested for
those who cannot afford Standard or Graduated Repayment terms
due to a low monthly income.
Proration
This payment plan lowers the total monthly payment, to no
less than $25 a month, per loan, when a borrower has a combination
of SLS, PLUS, and Stafford Loans.
Loan
Consolidation
This allows you to refinance the combination of one or more loans at a fixed
interest rate over an extended period of time.
Consolidation can be beneficial if you have a large loan balance.
Visit OSLA
Consolidation Loan for more information.
Refinance
After a substantial portion of a loan has been paid it may
be possible to refinance the remaining amount due over the 10-year maximum repayment
term.
Deferment
Borrowers may apply for Deferment, a temporary suspension
of payments, for the following reasons: returning to school,
unemployment, financial hardship and certain other circumstances.
Visit OSLA Deferment
for more information.
Forbearance
Borrowers may apply for Forbearance, a temporary suspension
or reduction in payments, in times of financial hardship or
under certain other circumstances. Visit OSLA
Forbearance for more information.
