Student Loan Repayment

Now that you have created goals, estimated payments and made a budget it's time to pick your payment option! There are two things you'll want to understand while considering what to choose:

• repayment period - the amount of years you have to repay your loan, accured interest and fees
• repayment option - defines how much your monthly payment will be and how your payments will be applied

Remember, you can pay your debt faster than what is required by the payment plan you choose. Prepayment will reduce the principal balance of your loan and thereby reduce the total amount of interest you will pay long term. Just be sure to pay down your highest cost debt first (the debt with the highest interest rate).

Note: For actual repayment amounts and schedule of your student loan payments, contact your loan holder or servicer.

The following are payment plans offered on Access Group federal loans and private student loans:

• Standard Repayment Plan
• Graduated Repayment Plan
• Extended Repayment Plan*
• Income-Sensitive Repayment Plan*

*Note: These options are for federal loans only.

Check back for information about income based repayment available beginning July 1, 2009.

Compare standard and expanded repayment examples on Federal Stafford and PLUS loans.

• Payment is fixed at a monthly amount (actual amount may vary as interest rate varies)
• Requires the highest initial monthly payment, but results in the lowest total cost in interest paid
• Length of repayment is 10 years for federal loans and 20 years for Access Group private loans

• Monthly payments start lower and increase at scheduled intervals (early payments typically cover only interest charges)
• No monthly payment can be more than three times greater than any other monthly payment and each payment must at least equal the interest due
• Total finance charges are higher over the length of repayment than with the EasyPay Equal Plan
• Length of repayment is 10 years for federal loans and 20 years for Access Group private loans

• Access Group's Graduated Repayment Plans
  
  • EasyPay 2 Step
    Begins with payments of interest only for the first two years, followed by payments of interest and principal for the balance of the loan repayment period
  • EasyPay 3 Step
    Begins with payments of interest only for the first two years, followed by three years of payments of interest and partial principal, then concludes with payments of interest and principal for the balance of the loan repayment period

• Eligible borrowers can reduce federal student loan monthly payments by up to 40%*
• Repayment can be extended over a maximum of 25 years using either an equal repayment plan or a graduated repayment plan
• Monthly payment is lower than with the standard plan, resulting in a higher overall cost
• Eligiblity:
  • Must have FFELP loan debt in excess of $30,000
  • For borrowers (1) whose first FFELP loan was borrowed on or after October 7, 1998, or (2) who, on the date he or she obtained the post-October 7, 1998 FFELP loan, had no outstanding balance on a FFELP loan obtained prior to October 7, 1998.
• Alternative to a Federal Consolidation Loan for Stafford and PLUS loan borrowers seeking to lower their monthly payment while maintaining their lower interest rate

Compare monthly payment amounts between the standard and extended payment options

Enroll in extended repayment

* Eligible loans include Federal Stafford, Federal PLUS, and Federal Consolidation Loans. Federal Direct and Perkins loans are not eligible and should not be considered for the purposes of meeting the $30,000 minimum.

• The borrower must request this plan from the loan holder/servicer and provide any requested income documentation
• Monthly payments are based on the borrower's expected total monthly gross income and are adjusted annually
• Monthly payments can be no less than the amount of accrued interest and no more than three times greater than any other payment
• Payment must at least equal interest charges
• Length of repayment is up to 15 years
• Offers lower monthly payments, but incurs higher interest paid than the standard 10-year payment plan