Repayment Options

There are several valid options which offer temporary relief to individuals who are having trouble repaying their student loans.

Standard Repayment Schedule
With the Standard Repayment Schedule plan, your loan is repaid in equal monthly payments over a 10-year period or 120 equal payments. The minimum monthly payment is $50, but the actual monthly cost depends on your loan balance and interest rate.

Graduated Repayment Schedule
A Graduated Repayment plan is ideal if you have a limited income today but expect to have higher earnings in the future. The mnthly payments begin low and increase gradually as your income increases. The initial monthly payments must be high enough to cover each month's interest. This option may increase the total amount you will be required to repay as more interest may accrue over the life of the loan.

Income Sensitive Repayment Schedule
An Income Sensitive plan allows you to pay based on your income. You will be required to provide proof of your gross income, and your servicer will calculate the amount you should reasonably be able to pay. To stay on the Income Sensitive Repayment Schedule, you will have to provide your servicer with proof of income annually. Your repayment amount will be adjusted each year based on your gross income. This option will increase the total amount of your loan and may extend your repayment period.

Consolidation
Consolidation is a loan repayment program designed to allow borrowers to combine several student loans into one loan.

Deferment
During periods of deferment, you are allowed to temporarily cease making payments on your loan. If you borrowed a Perkins Loan or a Federal Subsidized Stafford Loan, you won't be responsible for paying the interest that accrues during the deferment period. If your loan is a Federal Unsubsidized Stafford Loan or a Federal PLUS Loan, you will be responsible for that interest.

The three most common conditions that qualify for deferment are:  

• Unemployment 
• Returning to school 
• Economic hardship 

If you think you may be eligible for a deferment, ask for a deferment form. Your loan holder will not process the deferment until you've returned the form and any necessary documentation. Anticipate a 30-day processing period. You should continue making payments until your deferment is approved.

For more information or to see if you are eligible for deferment on your ESF loan, please contact Default Prevention at 800.362.1304.

Forbearance
If you are unable to make payments at some point during the life of your loan and you don't qualify for a deferment, the holder of your loan may grant a temporary cessation of payment called a forbearance. During the period of forbearance, interest continues to accrue on your loan and must be either paid or added back to the principal. For more information or to see if you are eligible for forbearance on your ESF loan, please contact our counselor at 1.800.362.1304.