Need a lower monthly payment? Graduated repayment plans usually start out with lower payments and increase over a period of up to 10 years from the date the loan entered repayment. No single payment will be more than three times greater than any other payment. If you anticipate your income to grow steadily over time, this payment option may be the right one for you. In some cases, you may be able to reduce your initial student loan payments by almost 50%. Repayment plans vary by loan type be sure to talk to your loan servicer, to see what repayment options are available to you.
ELIGABLE FEDERAL STUDENT LOAN PROGRAMS
Graduated repayment allows Stafford, PLUS, and Consolidation loans to be repaid with reduced payments that may be as low as interest only.
Keep in mind that reduced payments can increase the total cost since the loan principal is repaid more slowly which means you could be paying more interest over time.
Partial or full prepayment is allowed at any time without penalty. Eligibility for a graduated repayment plan may vary depending on loan type, interest rate, outstanding balance, and repayment time remaining.