| Once
you have received any type of borrowed funds as part
of your financial aid package, you should consider the
responsibility of paying back the loans. By planning
the repayment of your student loan, borrowers can avoid
future loan repayment problems.
Brazos Student Lending 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%; one payment per
month for 120 months. Currently (for loans first disbursed
on or after July 1, 2006), the repayment interest rate
is a fixed rate of 6.8% for Stafford loans and a fixed
rate of 8.5% for PLUS loans. Assuming all payments are
made on schedule, the minimum monthly payment for all
Federal Stafford of Federal PLUS loans is $50.00/month.
Other repayment plan options are also available (see
below). 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.
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. You will make interest-only payments for
the first four years of repayment. Then, principal and
interest payments begin after the initial four year
period. All payments must at least equal the interest
accrued on the loan between scheduled payments
With the Graduated Repayment
plan, you will pay more interest over the life of the
loan than you would under a Standard Repayment plan.
Contact
us about a Graduated Repayment plan by calling 1-888-617-7349.
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. Your monthly payment amount is based on
a percentage of your projected monthly gross income
for the upcoming year and your loan amount. Payments
are only in effect for 12 months. Your payment will
be recalculated each year. Payments must at least equal
the interest accrued on the loan between scheduled payments.
You will be required to provide
proof of income (a tax return) on an annual basis.
Contact
us about an Income Sensitive Repayment plan by calling
1-888-617-7349.
EXTENDED REPAYMENT
If your total Stafford loan indebtedness is great than
$30,000, you may extend your repayment term up to 25
years.
Contact
us about an Extended Repayment plan by calling 1-888-617-7349.
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