financing your dream
Other Common Repayment Options
Some public and private loans provide repayment options for borrowers who can’t meet their loan payments. Here are common federal repayment options:
- Extended Repayment stretches the loan term to 12-30 years. Payments are lower, but the total amount paid will be higher than the original balance.
- Graduated repayment is for those who currently have small incomes, but who expect to earn more in time. Payments increase after 2 years.
- Income-contingent repayment is based on the borrower's income and the total amount of debt. Payments adjust each year as the person’s income increases.
- Income-sensitive repayment is an option in which monthly payments are tied to a percentage of the borrower’s gross monthly income.