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

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.

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

  • 25 years
  • Must have "partial financial hardship" at the time you enter the plan
  • Maximum monthly payments will be 15% of discretionary income 
  • 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
  • Effective for new borrowers only as of 7/1/14: maximum monthly payments will be 10% of discretionary income, a borrowers is no longer allowed to choose different plans for different loans if selecting IBR as one of the plans, and loan forgiveness occurs after 20 years of qualifying payements and is taxable in the year it is forgiven
  • 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)                                                                                                                                                                                                                                           

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
  • Monthly payments will be 10% of discretionary income and based on Federal Direct Loan amount, AGI, and family size
  • 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: IBR & PYE

  • Spousal income counted if joint return filed
  • Spousal educational debt counted in determination of IBR eligibility
  • Can use calculators to determine impact of filing jointly on eligibility and subsequent payment
  • Designed for highly indebted borrowers with low to moderate incomes
  • Annual application and "partial financial hardship" required
  • Allows most students to get on their feet and get started with life

Income Contingent (Direct Loans Only)

  • 25 years
  • Federal Direct Loans only, not for Federal Family Education Loans (FFEL)*
  • Monthly payment based on annual income, family size and total federal student loan debt
  • Annual income verification required
  • Does not require "partial financial hardship"
  • 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.