Contact Information

Office of Financial Aid

IIT Chicago-Kent College of Law
565 W. Adams St., Suite 230
Chicago, IL 60661
finaid@kentlaw.iit.edu
P: (312) 906-5180
F: (312) 906-5274

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Loan Repayment Plans

Standard

  • 10 years
  • Same payment each month 
  • Automatically assigned by loan servicer if no repayement plan is selected after grace period expires
  • Monthly payements are higher than other plans but total repayment costs are lower

Graduated

  • 10 years
  • Payments are lower at first and then increase, usually every two years
  • Minimum payment equals amounts of interest that accures monthly for up to the maximum repayment period

Extended

*Note: See NSLDS to find out if you have FFEL or Diret Loans. The FFEL Program was dissolved in 2010, and since then all federal student loans made have been Direct Loans. 

Income Related Repayment Plans: IBR, PAYE & REPAYE

Monthly payments are tied at least in part to income. Borrower must apply and provide required documentation each year. Initial and/or subsequent lower payments may result in higher overall repayment costs when compared with Standard. Note the loan types eligible for each income related repayment plan vary.

NEW Income Based Repayment (IBR) (Direct Loans Only 7/1/2014)

  • 20 years
  • Must be a "new borrower" on or after July 1, 2014
  • Must have "partial financial hardship" at the time you enter the plan (high debt relative to income)
  • Maximum monthly payments will be 10% of discretionary income 
  • Payment changes as your income changes, but you cannot be kicked out of the plan unless you leave IBR
  • Payment can be as low as $0 and still be considered as a qualifying repayment plan
  • Negative amoritization is allowed due to upaid interest on any subsidized loans paid by federal government for the first 36 months (3 years)      
  • Spousal loan debt and income included if file joint income taxes
  • Any outstanding balance on your loans after making the equivalent of 20 years of qualifying monthly payments will be forgiven and taxable in the year it is forgiven

Income Based Repayment (IBR) (Direct Loans and FFEL, Effective 7/1/2009)

  • 25 years
  • Must have "partial financial hardship" at the time you enter the plan (high debt relative to income)
  • Maximum monthly payments will be 15% of discretionary income 
  • Payment changes as your income changes, but you cannot be kicked out of the plan unless you leave IBR
  • Payment can be as low as $0 and still be considered as a qualifying repayment plan
  • Negative amoritization is allowed due to upaid interest on any subsidized loans paid by federal government for the first 36 months (3 years)
  • Spousal loan debt and income included if file joint income taxes     
  • Any outstanding balance on your loans after making the equivalent of 25 years of qualifying monthly payments will be forgiven and taxable in the year it is forgiven                                                                                                                                                                                                                         

Revised Pay As You Earn (REPAY) (Direct Loans Only, Effective 12/17/2015)

  • 25 years for graduate students
  • No "partial financial hardship" required at the time you enter the plan (high debt relative to income)
  • Maximum monthly payments will be 10% of your discretionary income 
  • Payments are recalculated each year as your income and family size changes, but you cannot be kicked out of the plan unless you leave REPAY
  • Payment can be as low as $0 and still be considered as a qualifying repayment plan
  • Negative amoritization is allowed due to upaid interest on any subsidized loans paid by federal government for the first 36 months (3 years)
  • Spouse's income and loan debt is included regardless of tax filing status (with limited exceptions)
  • No cap on monthly payment amount   
  • Any outstanding balance on your loans after making the equivalent of 25 years of qualifying monthly payments will be forgiven and taxable in the year it is forgiven

Pay As You Earn (PAYE) (Direct Loans Only, Effective 12/12/2012)

  • 20 years
  • Must be "new borrower" on or after October 1, 2007 who also had a federal student loan disbursement made on or after October 1, 2011
  • Must have a "partial financial hardship" at the time you enter the plan (high debt relative to income)
  • Maximum monthly payments will be 10% of your discretionary income
  • Payments are recalculated each year as your income and family size changes, but you cannot be kicked out of the plan unless you leave PAYE
  • Spoue's income included only if file joint income taxes, spouse's loan debt can be included
  • Monthly payment will never be more than the 10-year Standard Plan amount
  • Any outstanding balance on your loan after making the equivalent of 20 years of qualifying monthly payment will be forgiven and taxable in the year it is forgiven

Note On Income Related Plans IBR, PAYE, & REPAYE:

  • You can use calculators to determine impact of filing jointly on eligibility and subsequent payments
  • Decisions to file separate income taxes when married should be evaluated by your tax advisor
  • Designed for highly indebted borrowers with low to moderate incomes
  • Annual application required 
  • "Partial financial hardship" required only at the time enter IBR, New IBR, and PAYE, not REPAY
  • Allows most students to get on their feet and get started with life after graduation when not able to make higher monthly payments
  • You'll pay more over time than under the 10 year Standard Plan
  • Pre-payment allows you to reduce your loan debt, contact your loan seriver for more information about their preferred payment methods

Income Contingent (ICR) (Direct Loans Only)

  • 25 years
  • Federal Direct Loans only, not for Federal Family Education Loans (FFEL)*
  • Does not require "partial financial hardship" to enter the plan (high debt relative to income)
  • Maximum monthly payment is 20% of your discretionary income
  • Monthly payment based on annual income, family size and total federal student loan debt
  • Payments are recalculated each year as your income, family size, and total loan amount changes, but you cannot be kicked out of the plan unless you leave ICR.
  • Negative amortiztation is allowed
  • Any outstanding balance on your loan after making the equivalent of 25 years of qualifying monthly payments will be forgiven and taxable

*Note: See NSLDS to find out if you have FFEL or Direct Loans. The FFEL Program was dissolved in 2010. Since then all federal student loans have been Direct Loans.

Income-Sensitive (FFEL Only)

  • 10 years
  • Federal Family Education Loans (FFEL) only, not for Direct Loans*
  • Monthly payments based on annual income and federal student loan debt, adjusted annually upon re-certification by borrower
  • Payment must cover monthly accured interest
  • Payment changes as your income changes
  • Each servicer's formula for determining the monthly payment amount under this plan can vary
  • Least selected income based plan 

*Note: See NSLDS to find out if you have FFEL or Direct Loans. The FFEL Program was dissovled in 2010, since then all federal student loans have been Direct Loans, therefore loans borrowed after 2010 will not be eligible for this plan.

You can change repayment plans once every 12 months. Contact your loan servicer to select a repayment plan option that works best for you.