Repay your Federal Stafford Loan

After you stop attending school at least half time, your 6-month grace period begins. You receive only one grace period per loan.
Repayment begins after the grace period ends, with the first payment usually due 45-60 days later.
The maximum repayment period is 10 years.
Payments are expected each month.
The minimum monthly payment is $50, but may be higher depending on your balance.
You may prepay your loan at any time without penalty. Prepayment may substantially reduce your interest costs.

Payment plans

Standard:

Minimum monthly payment is $50, but may be higher depending on balance
Maximum repayment period of 10 years

Graduated:

Begins with lower payment amounts that increase over time
More interest will accrue over the life of the loan because the principal balance decreases at a slower rate.

Income-sensitive:

An adjusted payment amount based on gross income
Payment will be the greater of your monthly interest amount or 4 percent of your gross monthly income
Eligibility and payment amount verified annually
More interest will accrue over the life of the loan because the principal balance decreases at a slower rate.

Income-based:
- Available for payments made on or after July 1, 2009
- An adjusted payment amount based on income and family size
- Payment will not be more than 15 percent of the amount by which your adjusted gross income exceeds 150 percent of the poverty line for your family size.
- If the monthly payment amount is not enough to pay accrued interest on a subsidized Federal Stafford Loan, the Department of Education will pay the remaining interest for a period of three years.
- Eligibility re-evaluated annually
- More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.
- Any outstanding loan balance after 25 years will be forgiven
  - Very few borrowers will have a remaining balance after 25 years.
  - The amount that is forgiven may be taxable.
- Estimate payment under the income based repayment plan.
Extended:

Available to new borrowers on or after October 7, 1998, who have a minimum balance of $30,000 in loans
Payment amounts can be either fixed annually or graduated.
Maximum repayment term is 25 years
More interest may accrue over the life of the loan because the principal balance decreases at a slower rate.

If you ever have difficulty repaying your loan, contact your loan holder immediately, as you have options, including a change to your repayment plan, deferment, and forbearance!