Repayment
Get more time to repay.
Consolidate your college loans with NextStudent, and you could get up to 20 more years to repay.
Your new repayment term on your student loan consolidation will depend on the total dollar amount of your outstanding student loan debt.
|
Education Debt |
Repayment Term |
|
$10,500 – $19,999 |
15 years |
|
$20,000 – $39,999 |
20 years |
|
$40,000 – $59,999 |
25 years |
|
$60,000 + |
30 years |
No prepayment penalties.
You won’t be ever be charged for making more than the minimum payment or for paying off your Federal Consolidation Loan early.
What if I have trouble making my payments?
If you’re unemployed or experiencing financial difficulties, you may qualify for deferment or forbearance benefits. You can also request an in-school deferment if you decide to go back to school at least half time.
With the deferment and forbearance benefits that come with your student loan consolidation, you can temporarily postpone making payments without affecting your credit rating.
You can also choose from different repayment options, such as income-sensitive and extended payment plans, which could help make repayment more affordable.
If I’m temporarily not making any student loan payments because I’m in deferment or forbearance, am I still being charged interest?
That depends on the types of student loans you consolidated and on whether you’re in deferment or in forbearance.
When your student loan consolidation is in deferment, the government will pay the interest on that portion of your student loan consolidation that was originally a Perkins loan or subsidized Stafford loan. During deferment, you’ll only be charged interest on that portion of your Federal Consolidation Loan that was originally a PLUS, Grad PLUS or unsubsidized Stafford loan.
When your student loan consolidation is in forbearance, you’ll be responsible for paying all interest that accrues.
Any unpaid interest that accrues during a deferment or forbearance period will be added to the principal of your Federal Consolidation Loan for you to repay once your repayment resumes. If you want to avoid having any accrued interest added to your principal student loan consolidation balance, you can choose to make interest-only payments during either of these postponement periods.
What are my repayment options?
You have four repayment plans available to you for your Federal Consolidation Loan. Besides the standard repayment plan that’s determined by the amount of your outstanding student loan debt, you can also choose one of three alternate payment plans that could help make repayment more affordable:
- Standard Repayment: the typical repayment period for a Federal Consolidation Loan ranges from 10 to 30 years, depending on your outstanding student loan debt. In a standard repayment plan, the monthly payment amount on your student loan consolidation will remain the same throughout your repayment period.
- Extended Repayment: a repayment plan that allows you to extend your repayment period up to a 25-year term, depending on your student loan amount. This option is available to you if your student loans total more than $30,000 and if you received your first student loan on or after October 7, 1998.
- Graduated Repayment: a repayment plan that allows you to start with a lower monthly payment and then gradually increases the monthly payment amount over the repayment term. The payment amount generally increases every two years and must be at least enough to cover the monthly interest.
- Income-Sensitive Repayment: a repayment plan that bases your monthly payment amount on your monthly income. The monthly payment must be at least enough to cover the monthly interest. You’ll need to submit income documentation to qualify for this repayment plan, and you need to requalify each year.
Why student loan consolidation?
Which college loans can I consolidate?
How much does student loan consolidation cost?
Student Loan Consolidation FAQs
