Since this is a new loan, it will come with new terms and you will be able to make some choices regarding your repayment plan.
However, you should be aware that lengthening the term of your loan will mean paying more interest over the life of the loan and making more total payments, both of which increase the cost of the loan.
Your Direct Consolidation Loan will be eligible for IBR if it does not include any PLUS loans made to parents.
The Income-Contingent Repayment Plan The Income-Contingent Repayment Plan (ICR) is for Direct Consolidation Loan borrowers who do not qualify for IBR.
Student borrowers will be notified (by Direct Loans) if the application is denied, the reason for the denial, and the name of the credit bureau from which the denial was obtained. Once the university receives the FAFSA, we will determine if the student is eligible for federal, state and or institutional aid.
They are called Income-Based Repayment and Income-Contingent Repayment.
The calculation rounds up the weighted average of those rates to the nearest one-eighth of a percent, but sets the maximum rate at 8.25%.
Note: the weighted average means both the individual interest rates and the amounts of each loan will be included in the averaging process.
The Income-Based Repayment Plan The Income-Based Repayment Plan (IBR) is structured to lower your monthly payment amount in order to keep your loan out of default.
It has one unique requirement for eligibility: your financial situation must qualify as a , meaning your monthly repayment amount as calculated under the Standard Repayment Plan, using a loan term of ten years, is higher than your monthly repayment amount as calculated under the IBR.