Your Payments
Repayment of most subsidized and unsubsidized Stafford Loans, made under FFELP or Direct Loans, begins six months after you have graduated, or are no longer enrolled in school at least half time.
The period between those events and repaying your loan is a six-month grace period. For Perkins Loans, the grace period is nine months.
The holder of your loan or your servicer will mail you a repayment schedule (which may be in the form of a billing statement or coupon book) approximately 30 days before your first loan payment is due.
It is very important that you keep the holder of your loan informed of your current address and contact information so that you will receive the repayment information.
The repayment schedule will reflect the total balance of your loan, your interest rate, the amount and due dates of your monthly payments, and the address to which you must send your payments.
Carefully review all the information on your repayment schedule to make sure that it is correct.
If the information is not accurate, or you do not receive this document, contact the holder of your loan immediately.
The federal government pays (subsidizes) the interest on a Subsidized Stafford/Direct Loan while you are enrolled in college at least half time and during your six-month grace period.
The interest on an Unsubsidized Stafford/Direct Loan is not paid by the federal government and begins to accrue once you receive your loan.
You choose to either pay this interest quarterly or have it added (capitalized) to your loan principal when you sign the Master Promissory Note for the loan.
The interest on a PLUS Loan begins to accrue on the date the loan is made.
Repayment begins 60 days after the loan is delivered to your parent(s).
It is in your best interest to ensure that you can pay your student loans in a timely manner.
Income Based Repayment
Designed for borrowers experiencing a "partial financial hardship" and a high debt relative to their income.
This is a new repayment option starting July 1, 2009 for borrowers with Stafford, SLS, Grad PLUS or Consolidation loans.
PLUS loans, private loans and consolidation loans which include PLUS loans are not eligible.
Borrowers may qualify if they earn below 150% of the poverty level based on family size (includes spouse’s income, if applicable.)
For more information on Income-Based Repayment contact your lender.
To estimate your eligibility and calculate payments, please visit:
http://mappingyourfuture.org/paying/ibrcalculator.cfm 