INCOME SENSITIVE REPAYMENT

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 (800) 523-7446.

1. Payments are calculated using a 6.29% annual interest rate and a ten-year repayment period. Examples only, actual numbers may vary.
2. Assumes a 5% annual income growth (Census Bureau). Payment equals greater of 4% of income or interest only. If payment calculation drops below the Standard Repayment Plan amount in a given year, the term is extended by one year. The maximum number extension of the repayment period is five years, or, a maximum term is 15 years, the last 10 of which would be under the Standard Repayment Plan (equal and fixed).