There are several repayment plans in the Federal Loan Forgiveness Program:
You will pay a fixed amount each month until your loans are paid in full. Your monthly payment will be at least $50 for up to 10-30 years, based upon your total education indebtedness (loan amounts).
Your minimum payment amount will be at least equal to the amount of interest accrued monthly. Your payments start out low, and then increase every two years for up to 10-30 years and is based on your total education indebtedness (loan amounts).
To be eligible, your Direct Loan balance must be greater than $30,000 and you will have up to 25 years to repay your loans. You have two payment options:
– Fixed Monthly Payment Option: You will pay a fixed amount each month until your loans are paid in full.
– Graduated Monthly Payment Options: Your minimum payment amount will be at least $50 or the amount of interest accrued monthly, whichever is greater. Your payment start off low and then increase every two years.
- Income Contingent Repayment Plan (ICR)
Your monthly payments will be based on annual income, Direct Loan balance, and family size. They are spread over a term of 25 years.
- Income Based Repayment Plan (IBR)
Your monthly payments will be based on your annual income and family size, and spread over 25 years. You must be experiencing a partial financial hardship to initially select this plan and once you select this plan you cannot change to any other plan except standard.
For more in depth information on the repayment plans, please see our Repayment Plans page