Flexible Student Loan Repayment Plans
In addition to locking in lower interest rates, our Student Benefit Services consolidated loan offers a variety of student loan repayment options.
Compared to the standard variable-rate 10-year repayment plan, each of these options offers you additional flexibility in repaying student loans through a variety of payment terms and monthly payment amounts.
Repayment terms are calculated using your total outstanding debt, including student loans that are not eligible for consolidation. This ensures that you have the longest repayment term available to reduce your monthly payments.
Your first payment after consolidation is usually due within 30 days after your consolidation is completed, or the day after your grace period ends. However, you must continue to make payments on your current loans until you are notified in writing that your consolidation process is complete.
There are several convenient consolidation student loan repayment plans to choose from:
Level Repayment
Extended Repayment
Level Repayment
(also known as Standard Repayment)
Currently your student loan debts must be repaid within the maximum of ten (10) years. With a consolidation loan from SBS the maximum repayment period is based on the amount of your student loan debt and may be as much as 30 years.
Level repayment is your least expensive option, in that the total amount you would repay under this option is generally less than other repayment plans. Payments are fixed over the life of the loan and repay all principal and interest due each month.
The term, or time period, to pay back your consolidated loan on a level repayment plan is based on the total amount of all student loan debt, including your consolidated loans:
LEVEL REPAYMENT TERMS |
|
Total Student Loan Debt |
Maximum Repayment Term |
$7,500 - $9,999 |
Up to 12 years |
$10,000 - $19,999 |
Up to 15 years |
$20,000 - $39,999 |
Up to 20 years |
$40,000 - $59,999 |
Up to 25 years |
$60,000 and greater |
Up to 30 years |
Extended
Repayment
For new Federal Family Education Loan Program (FFELP) borrowers on or after October 7, 1998, who accumulate outstanding loans totaling more than $30,000 but less than $40,000, an extended repayment plan is available, with either a fixed annual or graduate repayment amount not to exceed 25 years.
How to Get the Pre-July 1st Interest Rate After the Deadline!
According to the U.S. Department of Education, if you have "substantially completed" a student loan consolidation application prior to July 1, 2006, you may still qualify for the lower pre-July 1 interest rate, even at this late date!
CURRENT STUDENT LOAN CONSOLIDATION
INTEREST RATES
5.375% - 6.125%*
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