University of Pittsburgh at Johnstown
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Repayment Plans

As with Stafford loan repayment, several repayment plans exist for consolidation loans.

  • Equal/Level – principal and interest is applied evenly over the life of the loan. The amount of interest that accrues is dependent on the current loan balance.
  • Income Sensitive – Payments are based on your monthly income and range from 4% to 20% of your gross monthly income.
  • Graduated - Under the Graduated repayment options, your initial monthly installments will be significantly lower than the monthly payment required by the standard repayment plan but will increase at specified intervals. The Grad Choice 2 plan allows you to make interest-only payments for the first two years; at the beginning of the third year, the payment amount becomes fixed for the life of the loan. Under the Grad Choice 5 plan, you may make interest-only payments for the first five years; your monthly payment will increase at the beginning of the sixth year, to standard payments of principal and interest; your monthly payment also becomes fixed for the remainder of the payback period.
  • Extended – if your underlying loan balance is $30,000 or more the repayment term can be extended to 25 years.
Last Reviewed: December 7, 2004