FEDERAL LOAN REPAYMENT

Repayment
The maximum repayment period you are eligible for is determined by your federal student loan balance at the time of consolidation. The following table shows you the loan balance ranges and the maximum repayment terms associated with the ScholarPoint Consolidation loan:
Student Loan Repayment Terms
Loan Balance Eligible Term (Months) Eligible Term (Years)
$20,000 - $39,999.99 240 20
$40,000 - $59,999.99 300 25
$60,000 and Greater 360 30

Note:
By default, your student loan term will be set to the maximum loan repayment term. You may, however, request a repayment loan term less than the maximum. There is no penalty for early repayment of school loans, so by making larger payments you may pay off your federal school debt sooner.
Repayment Schedules
There are several options available for repayment of your student loan. To help you choose the one right for you, read and evaluate the options.
Level / Standard:
Level repayment is the most common payment schedule option. Borrowers repay the equal installments over their repayment period. The minimum monthly payment is determined by the amount of the loan and the length of the repayment period. Generally, this option is the fastest and most economical method of repayment. Use our online calculator to estimate your monthly payment on a level repayment schedule.
Graduated:
Borrowers who make graduated payments will begin repaying their loans at a lower payment amount than normal and increase payment amounts over time. With ScholarPoint, you have choices including selecting a plan where your payment covers interest only for the first two years, then increases for years three through five and recalculates at a level plan for year six and on. The amount of interest paid over the life of the loan is higher with this option than with level repayment from the start, but it does allow you to pay less per month for the first five years which will give you greater flexibility.
Income Sensitive:
With an income sensitive repayment schedule, the monthly payment amount is adjusted annually to reflect changes in the borrower's income, based on the total monthly income and student loan debt. This option may be used for a maximum of five years and must be applied for after you have received a disclosure statement. If you select this option, you will be assigned a level repayment plan until you have applied for and been approved for this plan.
If you encounter hardship and are concerned that making your payments may become difficult, contact your lender or guaranty agency immediately. By taking early action to help yourself, you will receive assistance to help you avoid default. Some options available to you are the following:
Deferments let you postpone monthly payments.
Forbearance allows you to reduce or delay payments.
Forgiveness eliminates your obligation to repay all or part of your loan (forgiveness is primarily granted for permanent or total disability or death).
Change your repayment plan to either a Graduated or Income Sensitive Repayment plan.
The most important thing to do is to contact your lender or guaranty agency before any problems arise. This will allow you to work together to find a suitable solution.
Extended:
You may repay over a 25-year period on a Level or Graduated plan if you have loans totaling between $30,000 and $40,000.