Loan Repayment

Loan Repayment Options

When do I need to start repaying my federal student loans?

Federal Direct Subsidized/Unsubsidized Loans

  • 6 months after graduation or when you drop below half time as a student
  • Immediately, if you drop below half time and have already used your 6 month grace period

Federal Direct PLUS Loans

  • 60 days after the final loan disbursement
  • Deferment option while the student for which the loans were obtained is enrolled at at least half time
  • 6 month deferment option after the student for which the loan was obtained graduate or drops below half time

Standard Repayment Plan

  • Fixed payment for up to 10 years

Graduated Repayment Plan

  • Payments start low, and are increased every 2 years

Extended Repayment Plan

  • Fixed or graduated amounts for up to 25 years

Pay As You Earn (PAYE)

  • 20 years to repay undergraduate loans
  • Payments max at 10% of discretionary income
  • Minimum payment amount changes as income changes
  • If balance is unpaid after 20 years of qualifying monthly payments, the loan is forgiven

Income Based Repayment

  • 25 years to repay undergraduate loans
  • Minimum payment is 15% of discretionary income
  • Minimum payments increase as income increases
  • If balance is unpaid after 20 years of qualifying monthly payments, the loan is forgiven

Income Contingent Repayment Plan

  • 25 years to repay undergraduate loans
  • Payments calculated annually based on adjusted gross income, family size and total Direct Loan balance
  • If balance is unpaid after 20 years of qualifying monthly payments, the loan is forgiven

NYS Get on Your Feet Loan Forgiveness Program

  • The NYS Get on Your Feet Loan Forgiveness Program provides up to 24 months of federal student loan debt relief to recent NYS college graduates who are participating in a federal income-driven repayment plan whose payments are generally capped at 10 percent of their discretionary income.
  • For more information, click here.

Public Service Forgiveness Program

  • If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program.
  • For more information, click here.

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