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Federal Loan Repayment

Federal Direct Subsidized and Unsubsidized Loans have an automatic six month grace period before repayment begins. Students who borrow a Grad PLUS loan may request to delay repayment for six months. Federal Perkins Loans have a nine month grace period. The grace period begins on the last day of the semester for a graduating student, on the last day of enrollment for a student who withdraws, or the date on which the student drops to less than half-time enrollment.

All borrowers are assigned to a federal loan servicer and will make payments to their loan servicer.  Borrowers may determine the name and contact information for their loan servicer at the National Student Loan Data System.

Federal Direct Loans have a number of repayment plans with repayment periods ranging from 10 to 25 years. Summary information on each repayment plan is listed below. Links are provided for more detailed information. In addition, sample repayment information for these repayment plans is provided below.

Standard Repayment:  Under the Standard Repayment Plan, borrowers make fixed monthly payments for up to 10 years. Monthly payments will vary based on loan debt but will be at least $50.

Extended Repayment:  Under the Extended Repayment Plan, borrowers with at least $30,000 in outstanding Direct Loans choose between fixed or graduated monthly payments for up to 25 years.

Graduated Repayment:  Under the Graduated Repayment Plan, borrowers will make monthly payments for up to 10 years, with payments starting at one amount and increasing every two years.

Income Based Repayment (IBR):  Under the Income Based Repayment Plan, borrowers who qualify will have payments limited to 15% of discretionary income as defined under this repayment plan. Borrowers may qualify for debt cancellation under this repayment plan. 

Pay As You Earn Repayment:  Under the Pay As You Earn Repayment Plan, borrowers who qualify for this plan will have payments limited to 10% of discretionary income as defined under this repayment plan. To be considered for this plan, a borrower must have had no federal loan debt prior to October 1, 2007 and must have received a loan disbursement on or after October 1, 2011 in addition to meeting other repayment requirements. Borrowers may qualify for debt cancellation under this repayment plan.

Revised Pay As You Earn Repayment (Re-PAYE):  Under the Revised Pay As You Earn Repayment Plan, borrowers who qualify for this plan will have payments limited to 10% of discretionary income as defined under this repayment plan. Borrowers may qualify for debt cancellation under this repayment plan.

Income Contingent Repayment (ICR):  Under the Income Contingent Repayment Plan, eligible borrowers pay the lower of the monthly payment that would be made under a 12 year repayment plan or 20% of the borrower’s discretionary income as defined under this repayment plan. Borrowers may qualify for debt cancellation under this repayment plan.

Sample Repayment Information for Federal Direct Subsidized and/or Unsubsidized Loans:

The following chart demonstrates how the various repayment plans can result in different monthly payment amounts for a student who has borrowed Federal Direct Subsidized and/or Unsubsidized Loans. The choice of repayment plan should be made after careful review of all the plans and a borrower’s individual financial circumstances. Borrowers can obtain specific payment information by contacting their servicer.

Scenario 1 Scenario 2 Scenario 3
Amount Borrowed $  25,000 $100,000 $100,000
AGI $  50,000      $  50,000 $  80,000
Interest Rate 6% 6% 6%
Filing Status            Single Single Married, Jointly
Dependents          0 0 1

All interest paid while in school
and during grace period

Yes Yes Yes
Repayment Plan Monthly  Payment Monthly  Payment Monthly  Payment
Standard $  278 $1,110 $1,110
Graduated* $  159 $  635 $   635
Extended (fixed) Not Applicable $  644 $   644
Extended (graduated)*         Not Applicable $  500 $   500
Income Based**            Does not qualify $  404 $   623
Pay As You Earn**       $  270 $  270 $   416
Revised Pay As You Earn (Re-PAYE)** $  270 $  270 $   416
Income Contingent** $  235 $  637 $   944

Federal Direct Subsidized and Unsubsidized Loans have an automatic six month grace period before repayment begins. Students who borrow a Grad PLUS loan may request to delay repayment for six months. Federal Perkins Loans have a nine month grace period. The grace period begins on the last day of the semester for a graduating student, on the last day of enrollment for a student who withdraws, or the date on which the student drops to less than half-time enrollment.

All borrowers are assigned to a federal loan servicer and will make These repayment amounts are examples only. Calculators  are available to help borrowers determine their monthly payment amount based on their specific circumstances

* Graduated repayment plans start at a set amount and increase every two years.

** Income driven plans are re-evaluated annually and may change as income changes.

Student Employment

The Office of Student Employment helps students find employment on campus, regardless of whether they receive Federal Work Study as part of their financial aid package. Find out more about student jobs.

Contact Us

(804) 289-8438
finaid@richmond.edu
Fax: (804) 484-1650
 
Queally Center, Suite 214
28 Westhampton Way
University of Richmond, VA 23173

Open weekdays, 8:30 a.m.–5 p.m

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