University of Houston-Victoria

Financial Aid

Student Loan Repayment Options

Federal student loans must be repaid to the lender or servicers of the borrowed loan funds over a period of 10 years unless other arrangements are made with the lender. Students can set up several types of repayment schedules to prevent loans from becoming delinquent or into default status.

A full overview of the Direct Loan program repayment plans are located on studentaid.ed.gov.  Below, the eligible federal loans are listed for each repayment plan.

Standard Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • all PLUS loans
  • all Consolidation Loans (Direct or FFEL)

Graduated Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • all PLUS loans
  • all Consolidation Loans (Direct or FFEL)

Extended Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • all PLUS loans
  • all Consolidation Loans (Direct or FFEL)

Revised Pay As You Earn Repayment  Plan (REPAYE)

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS loans made to students
  • Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents

Pay As You Earn Repayment Plan (PAYE)

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS loans made to students
  • Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents

Income-Based Repayment Plan (IBR)

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • all PLUS loans made to students
  • Consolidation Loans  (Direct or FFEL) that do not include  Direct or FFEL PLUS loans made to parents

Income-Contingent Repayment Plan (ICR)

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS Loans made to students
  • Direct Consolidation Loans

Income-Sensitive Repayment Plan

  • Subsidized and Unsubsidized Federal Stafford Loans
  • FFEL PLUS Loans
  • FFEL Consolidation Loans

Monthly Repayment Example:

If you borrow $20,000 in student loans during your college career, your monthly payment based on 6.8% interest rate would be approximately:

  • Standard Repayment: $230 per month (120 months)
  • Graduated Repayment: $133 - $398 per month (120 months)
  • Revised Pay As You Earn Repayment:  $0 - $136 per month (300 months)
  • Pay As You Earn Repayment: $0 - $78 per month (240 months)
  • Income-Based Repayment for New Borrowers: $0 - $78 per month (240 months)
  • Income-Based Repayment: $0 - $203 per month (300 months)
  • Income-Contingent Repayment:  $48 - $156 per month (300 months)
  • The samples above are subject to change.

Consolidation

Students can consolidate his/her eligible Federal Loans into one loan so the student will only have one monthly payment vs. multiple payments. The interest rate is determined by the weighted average of all loans included in the consolidation. An advantage of consolidating loans is a fixed interest rate and a disadvantage may be a longer repayment period. 

Deferment and Forbearance Options

Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily postpone or reduce your federal student loan payments. Postponing or reducing your payments may help you avoid default. Student loan servicers have several deferment options available, including a forbearance option.

Loan Forgiveness

If your loan is forgiven, you are no longer responsible for repaying the remaining portion of the loan. A review of the loan forgiveness programs are located on studentaid.ed.gov.

An example of loan forgiveness is the loan forgiveness programs for teachers which is intended to encourage individuals to enter and continue in the teaching profession.

Additional Resources

Here are some additional informative links:

Salt Money: https://www.saltmoney.org/index.html

Debt Payoff Calculator: http://www.thesimpledollar.com/debt-payoff-calculator/