Once you have received financial aid, students should consider the responsibility of paying back the loans. By planning the repayment of your student loan, students can avoid future loan repayment problems.

EFSI offers a variety of different schedules that can be used to pay back student loans:

STANDARD REPAYMENT (see an example)
Typical repayment schedules for both the Federal Stafford and the Federal PLUS loans are based on a 10-year repayment period and an interest rate of 8.25% (the highestpossible rate under the Federal Stafford Loans). Assuming all payments are made on schedule, the minimum monthly payment for all Federal Stafford of Federal PLUS loans is $50.00/month.

GRADUATED REPAYMENT (see an example)
A graduated Repayment plan sets your payments lower at the beginning of your repayment period and then increases over time. All payments must at least equal the interest accrued on the loan between scheduled payments. The advantage of this repayment plan is that it allows you have a lower payment when your income might be lower while you change or start a new career.

The disadvantage of this plan is that you will pay more interest over the life of the loan than you would under a Standard Repayment plan. You are allowed to change your repayment plan once a year. You must request a change in your repayment plan. If you do not choose a repayment plan, the Standard Repayment Plan will be used.

Contact us about a Graduated Repayment plan by calling 1-888-312-EFSI (3374).

INCOME SENSITIVE REPAYMENT (see an example)
An Income Sensitive Repayment plan sets the monthly payment based on your annual income and the balance of your loan. Payments will be adjusted up or down as your income rises or falls. All payments must at least equal the interest accrued on the loan between scheduled payments. The advantage of this repayment plan is that it allows you tie your payments to the income that you are earning. If your income goes up, your payments go up. If your income goes down, your payments go down.

A disadvantage of this plan can be that you may pay more interest over the life of the loan than you would with a Standard Repayment plan. You may be required to provide proof of income (a tax return) on an annual basis. You are allowed to change your repayment plan once a year. You must request a change in your repayment plan. If you do not choose a repayment plan, the Standard Repayment Plan will be used.

Contact us about an Income Sensitive Repayment plan by calling 1-888-312-EFSI (3374).