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ECFR 208 Repayment Plans – Graduated Outline

Rev. 1.0 12/11/21 

  1. Qualifying Loan Types 
  • Direct Subsidized Loan 
  • Direct Unsubsidized Loan 
  • Direct Subsidized Consolidation Loan 
  • Direct Unsubsidized Loan Consolidation Loan 
  • Direct Plus Loan 
  • Direct Plus Loan Consolidation 
  1. Qualifying Origination Dates 
  • All origination dates qualify for the repayment plans listed in section 1 of this document 
  1. Loan Terms 
  1. All Direct Loan borrowers that entered repayment prior to July 1st, 2006.   
  • $9,999 or less = 12-year Term 
  • $10,000 – $19,999 = 15 Year Term 
  • $20,000 – $39,999 = 20 Year Term 
  • $40,000 – $59,999 = 25 Year Term 
  • $60,000 or more = 30 Year Term 
  1. Direct Subsidized loan, Direct Unsubsidized Loan, and Direct Plus Loan entering Repayment on or after July 1st, 2006 
  1. Direct Consolidation Loans that entered repayment on or after July 1st, 2006. 
  • $7,499 or less = 10 Year Term 
  • $7,500 – $9,999 = 12-year Term 
  • $10,000 – $19,999 = 15 Year Term 
  • $20,000 – $39,999 = 20 Year Term 
  • $40,000 – $59,999 = 25 Year Term 
  • $60,000 or more = 30 Year Term 
  1. Requirements 
  1. A borrower will repay the full loan and any accrued interest by making payments at two or more levels throughout the term of the loan. Levels will have a change in payment amount.  
  1. For loan types explain in section 3A of this outline 
  • No payment amount will be less than the interest accrued between each payment of each month, or less than half of what would be required under a standard plan. No payment will be more than 1.5 times what a standard repayment would be. 
  1. For loan types in section 3B and 3C of this outline 
  • A borrower’s payments under this repayment plan may be less than $50 per month. No single payment will ever be three times greater than another payment amount under this plan.   
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