Repayment Plan Spotlight: Extended Plans

Here is a rundown on the Extended Level and Graduated Repayment plan to give you a better idea if it is the best option for you.

The Good:  This payment plan can lower your payment amount to a manageable amount

The Bad: Because the term is now 25 years, not only is it going to take a lot longer to pay off your loan, but it will take a lot more interest.  In addition, for the Graduated payments, payments will continue to go up over the life of the loan.

Who it is good for: People who are able to make lower payments but need a longer term in order to meet that goal

Eligibility Requirements: For both plans, they basically mimic the lesser term versions with the exception you can extend the term out further. In both cases, FFELP and Direct Loans are considered, however the earliest loan must be after 10/7/1998. You must have $30,000.00 in FFELP OR Direct Loans Debt (if you have $31,000 in Direct Loans but only $12,000 in FFELP, you can only place the Direct Loans in this plan). However the debt among all your servicers can count (for example $20,000 with Great Lakes and $15,000 with NelNet would still qualify you for the extended plan). Everything else is the same but now instead of stretching 120 payments (10 years) the term can now be extended out to 300 months (25 years).

How do I apply: Call your servicer to make the request verbally or you can access the form you need (both paper and electronically) through the servicers website