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 

2. Qualifying Origination Dates 

• All origination dates qualify for the repayment plans listed in section 1 of this document 

3. Loan Terms 

1. All Direct Loan borrowers that entered repayment prior to July 1^st, 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 

2. Direct Subsidized loan, Direct Unsubsidized Loan, and Direct Plus Loan entering Repayment on or after July 1^st, 2006 

3. Direct Consolidation Loans that entered repayment on or after July 1^st, 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 

4. 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.  

2. 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. 

3. 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.