Extended Repayment

studying-extended-student-loan-repayment-optionsThe extended repayment plan is broken up into an extended graduated repayment plan and an extended fixed repayment plan. With this plan, your payment will not be less than the interest that will accrue between your payments but that will not be greater than 3 times any other payment. This program is a good option for borrowers who may initially not be in the best financial situation to start paying back their loans. Under this plan, however, borrowers may end up paying back more on their loans than under a Standard Repayment plan.

The Extended Graduated plan is based on the idea that the job you hold after you graduate will be a lower paying initially with potential for financial growth in the future. Through this program, you will have your loans paid off within 25 years but you will typically end up paying out more money than if you were to enroll into the Standard Repayment Plan.

If order to qualify for an extended repayment plan, you must have Direct Loans/FFEL Loans after October 7th 1998 and have more than $30,000.00 in outstanding debt.  If you have both FFEL and Direct Loans, they both must have a minimum of $30,000.00 in outstanding debt.

Direct Subsidized/Unsubsidized, Direct Plus, Direct Consolidation and Federal Perkins Loans are all eligible for the extended repayment plan.  Additionally, FFEL Plus and FFEL consolidation loans are also eligible. For Direct Consolidated Loans and FFEL Consolidated loans, the repayment term can range up to 30 years. With these loans, the total repayment term will be based on the borrowers total loan indebtedness. Through this program, you will be able to gradually pay your loans back with payments increasing every two years (extended graduated) until your loans are paid in full. This is a good choice for new professionals starting off but borrowers will end up paying more in interest than on Standard Repayment Plan.

We want to assure you that our primary objective is to help you understand the options available to you in repaying your student loan debt. Our organization, which is a nonprofit Consumer Credit Counseling Organization has over twenty years of experience helping individuals live debt free and understand their complete financial picture. The consultation is free and the help and guidance we’ve provided individuals throughout the years has been invaluable. We encourage you to learn more about our organization by visiting Debt Reduction Services or calling us toll free at 1-877-688-3328. Our certified student loan counselors are ready to help you today!