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What are My Repayment Options?
Monthly payments will depend on the repayment plan offered by your lender. Here are the options available through SLND:
Standard Repayment
You will automatically receive a Standard Repayment Plan unless you request either the Income Sensitive, Graduated Repayment or Extended Repayment Plan. The Standard Repayment Plan has a set payment amount for the life of your loan.
Income Sensitive Repayment
This plan offers you the opportunity to match your payment obligations with your current income level. The repayment amount is adjusted annually based on your expected total monthly gross income. Payments must cover at least the interest that accrues between scheduled payments, and the maximum payment may never exceed three times the amount of any previously scheduled payment amount. This repayment option is limited to 5 years over the life of the loan.
Graduated Repayment
Under this plan, payments start low and gradually increase during your repayment period. This plan may be good for you if you anticipate your income will increase in the future.
Extended Repayment
This plan allows for a 25-year repayment period if all loans were received on or after 07/01/98 and have principal and interest totaling at least $30,000.
Note:
- Through the Income Sensitive, Graduated Repayment or Extended Repayment Plans, you will pay more interest than you ordinarily would under the Standard Repayment Plan.
- If you choose to make larger than scheduled payments to pay off the loan in a shorter period of time, no prepayment penalty will be imposed.
- You are required to continue making regularly scheduled payments with your lenders or schools until you are notified of the payment amount for your new consolidation loan.
You may use the Loan Consolidaton Worksheet to determine your estimated monthly payment amount should you decide to consolidate your loans.
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