Saint Louis University

Repayment Plans and Strategies

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Typically repayment begins after a grace period which can vary in length depending on the type of loan; the most common Grace Period is length is 6 months. In preparation for the end of your Grace Period and the start of repayment, review the available repayment plans options. If you would like to discuss your repayment plan options please do not hesitate to contact us 314-977-9840 or by email at sfp@slu.edu to schedule a personal appointment.

Standard PlanStandard repayment

  • Monthly payments are a fixed amount for the entire repayment term
  • Payment amounts are determined based on the total amount borrowed
  • Standard repayment term is 10
  • Total amount repaid is less than both the Graduated and Income Sensitive Plans


Graduated Plan

  • Payments begin smaller (but are never below the monthly accrued interest amount) and increase over the repayment period
  • Standard repayment term is 10 years
  • May be a good option if you expect your salary to increase over time
  • Repayment totals are generally larger than what the standard would have been
     

Extended Repayment

  • Can be used with either the Standard or Graduated plans
  • Must have borrowed $30,000 or more in student loans
  • Maximum repayment term of 25 years
  • Must have borrowed student loans after October of 1998

 

Income Sensitive Plan- contact your loan servicer for this option

  • Only on Federal Family Education Loan Programs (FFELP) loans
  • Payment amounts are adjusted annually based upon your monthly gross income
  • Monthly payment amounts will not be less than monthly accrued interest
  • Contact your loan servicer for additional information

Income Driven Repayment Plans

Income Driven Repayment Plans allow borrowers to reduce their monthly loan payment and still make required payments. Monthly payments are based on Adjusted Gross Income (AGI) and the borrower’s family size. Payments will never be more that the 10-year Standard amount and in some cases monthly payment amounts maybe as low as $0. Income Driven Repayment Plans

Income Contingent Repayment

  • For Federal Direct Loans Only
  • Payment amounts are adjusted annually based upon your adjusted gross income, family size and the amount of your Direct Loans
  • Initial payments may be smaller than other repayment plans
  • May have loan forgiveness options after 25 years

 

Income Based Repayment Plan (IBR)

  • Payment amounts are adjusted annually based upon your adjusted gross income and family size
  • Must demonstrate partial financial hardship
  • Initial payments may be smaller than other repayment plans
  • Monthly payments are 15% of your discretionary income
  • May have loan forgiveness options after 25 years

Pay As You Earn (PAYE)

  • For Federal Direct Loans Only
  • For new borrowers on or after October 1, 2007, with a disbursement after 10/1/2011.
  • Payment amounts are adjusted annually based upon your adjusted gross income and family size
  • Must demonstrate partial financial hardship
  • Initial payments may be less than monthly interest accrual
  • Monthly payments are 10% of your discretionary income
  • Loan forgiveness options after 20 years

 

Federal Loan Consolidation
If you are considering consolidation, please visit the 
consolidation page for more information on this repayment option.

Repayment Strategies-
You can develop repayment strategies so that you can minimize the total amount of interest paid over the life of the loans. You do not have to use the same repayment plan on every loan in your portfolio.

For example, you may choose to use a Graduated Plan for loans with a lower interest rate while choosing the Standard Plan for loans with a higher interest rate. This would allow you to pay the minimum on the lower interest rate loans, and put more money toward the higher interest rate loans.

Another example may be to combine an income driven repayment plan such as IBR or PAYE and participate in a 
Loan Repayment Program. This combination provides you with a lower monthly payment requirement and makes large lump sum payments to your outstanding loan principal, lowering your overall loan obligations.

Find an option that works best for you, and create a strategy for repayment.  It will allow you to repay your student loan obligation and reach your other financial goals. To help you build a strategy for repayment, use the following links to estimate your monthly repayment amounts and evaluate the different repayment plans: 
The AAMC's Medloans® Organizer & Calculator, FinAid's Loan Repayment Calculators or the fedloan Repayment Schedule Estimator.

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