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Federal Loan Repayment

For Federal Direct Subsidized, Unsubsidized, and Grad PLUS loans, students are not required to make payments while enrolled at least half time. Required repayment begins after the student’s six-month grace period. The grace period goes into effect 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. Federal Perkins Loans have a nine-month grace period. Direct PLUS loans for parent borrowers enter repayment when they are fully disbursed, but parents may defer making payments while their child is enrolled in school at least half-time and for an additional six months after their child graduates, withdraws, or drops below 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. Borrowers may also use the Repayment Estimator to help determine their monthly payment amount based on their specific circumstances.

Federal Direct Loans have a number of repayment plans with repayment periods ranging from 10 to 30 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 Plan:  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 Plan:  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 Plan:  Under the Graduated Repayment Plan, borrowers will make monthly payments for up to 10 years, with payments starting lower at first and increasing usually every two years.

Income Based Repayment (IBR) Plan:  Under the Income Based Repayment Plan, borrowers who qualify will have payments limited to 10 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 (PAYE) Plan:  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) Plan:  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. Any Direct Loan borrower with an eligible loan type may choose this plan. Borrowers may qualify for debt cancellation under this repayment plan.

Income Contingent Repayment (ICR) Plan:  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.

Income-Sensitive Repayment (ICR) Plan:  Under the Income-Sensitive Repayment Plan, payments increase or decrease based on your annual income.

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. 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 them. A Loan Simulator is available on studentaid.gov to help borrowers determine their monthly payment amount based on their specific circumstances.

 

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 the Office of Financial Aid

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

Open weekdays, 8:30 a.m.–5 p.m.

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