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Repayment Plans

Repayment Plan graphic

A couple things to should think about when looking at Direct Loan repayment plans:

  • You can prepay your loan at any time without penalty. Learn more about this in the FAQ page under the "Your Information" section.
  • If your loan has a variable interest rate, your monthly payment amount can change annually.
  • Your repayment period excludes times when you're loan is in deferment or forbearance, except for economic hardship deferments after October 1, 2007, for ICR and IBR.

Changing Repayment Plans

You can change your repayment plan as often as you want as long as the new plan has a longer repayment term than the amount of time you've already spent in repayment.

Your new repayment plan is calculated by subtracting the amount of time you've already spent in repayment from the repayment term allowed under the new plan. To change your plan, complete the Repayment Plan Selection Form and return it to CornerStone.

  1. If you're required to repay under the Income-Contingent Repayment (ICR) plan, you have to make three consecutive on-time payments of a payment amount based on your income before changing to another plan.
  2. If you choose to leave the Income-Based Repayment (IBR) plan, your account will be placed on the Standard Repayment Plan.
  3. You can change the IBR plan or the ICR plan at any time.
  4. Your repayment plan options depend on the type of loans you have. In the explanations below we will indicate which repayment plans are available under which loan types.

More Information

Standard Repayment Plan

Graduated Repayment Plan

Extended Repayment Plan

Income-Based Repayment (IBR) Plan

Income-Contingent Repayment (ICR) Plan

Pay As You Earn Repayment Plan