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Your
lender must give you at least five years to repay your loan, as
long as you meet the minimum monthly payment. Usually, the maximum
repayment period you can have is 10 years. Generally, the minimum
monthly payment is $50 or the interest due on the loan, whichever
is greater. Your monthly payment may be higher than $50
if a larger payment is necessary to pay off your debt within the
10-year maximum.
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Less If You Make Less |
Your
lender must offer you an income-sensitive or graduated repayment
schedule if you're a borrower whose first Stafford Loans were disbursed
on or after July 1, 1993. These repayment options allow you to make
lower monthly payments in the beginning of your repayment period
and increase your monthly payments as your income increases.
If
you're a borrower with no outstanding FFELP loans prior to October
7, 1998, and you accumulate a FFELP debt of over $30,000, you're
eligible for an extended repayment plan. Through extended repayment,
borrowers may pay under a fixed or graduated plan and must repay
the loan within 25 years.
If
you come into additional money which allows you to prepay all or
part of your loan, you can do so without any penalty.
You
have the right to information about your loan. This means you are
entitled to a copy of your promissory note which explains the terms
of the loan. In addition, your lender must send you a repayment
schedule which shows how much you owe and when your first payment
is due. Your lender or guaranty agent must answer any questions
you have about your Stafford Loan. If your lender or guaranty agency
reports on your account to a credit bureau , you're entitled to
know what they report.
All
Stafford Loans have a grace period, usually six months, when you
don't have to make any principal payments on your loan. (You don't
make any interest payments either if you have a subsidized Stafford
Loan.)
It doesn't happen, except under the most dire circumstances. Your
loan cannot be canceled unless you become permanently and totally
disabled or you die. No other circumstance will exempt you from
repaying your loan.
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