If you are borrowing for college, think ahead to the time when you will begin repaying your loans. How much will your monthly payments be? When will they begin? How long will you be making them?

The information on this page can help you think realistically about how you will manage your loan repayment after graduation. Start with this handy College Loan Organizer, a worksheet to help you track your college loans.

• DIRECT LOAN REPAYMENT PLANS

The federal government offers several payment plans for borrowers of Direct Subsidized and Unsubsidized Stafford Loans and Direct PLUS Loans. You may choose a standard, extended, or graduated payment plan, which will determine the amount of your monthly payments, the number of monthly payments you will make, and the total amount that you owe with interest.

Some students may be eligible for special repayment programs that are based on students’ income after graduation.  For example, the Income-Based Repayment (IBR) plan caps monthly payment amounts based on the graduate's income. For more information about the payment plan options, see the U.S. Department of Education’s Direct Loan Repayment Plans page.

• ESTIMATING YOUR MONTHLY PAYMENTS

You can use the U.S. Department of Education's Direct Loan repayment calculators to estimate what your monthly loan payments will be. The calculators will also show you details about your loan, such as how much you will be paying in interest.

 To use the calculators, you will need to know the cumulative amount of your federal loans. Using your federal PIN, log into the National Student Loan Data System to retrieve this information. 

 Go to the U.S. Department of Education’s Direct Loan Calculators and Interest page.

 Select the appropriate monthly repayment calculator.

 Enter the information requested for the calculation.

 Click Calculate to see what your monthly repayment amounts and interest payments will be when you begin repaying your loans. Select the Details button next to the appropriate repayment plan to see more information about your loan repayment (how much of your repayment will be interest, etc.).

• REQUIRED EXIT COUNSELING

Repayment of your federal Direct Loans begins six months after graduation, withdrawal from classes or dropping below half-time enrollment. Students borrowing through the Federal Loan Program are required to do online exit counseling.
 
The process is simple. Visit the interactive website (www.nslds.ed.gov) to find out about loan repayment, select a repayment plan and set a payment date. Click on the "Exit Counseling" link and follow the instructions. You will need your federal Personal Identification Number, or PIN), your Social Security number an date of birth to log in. If you do not have a PIN or you have forgotten it, visit www.pin.ed.gov.

If you don't complete the counseling session, your repayment will be established for you and your loans will automatically be put into a standard repayment plan. But that might not be right for you. There are options to explore during your exit counseling session.

If we can assist you in understanding these options or answer any questions, please call 734-763-6600 or contact us.

The U.S. Department of Education has additional information that may help to explain Direct Loan online counseling. Click on this link that will download as a PDF for reading, saving or printing.  

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• BACHELOR'S DEGREE

The average amount borrowed by a U-M student receiving a bachelor's degree is $19,050. The table below shows monthly payments and the total repaid under three different repayment options.

*Interest rate of 6.8% (the current rate during repayment or forbearance).

• MASTER'S DEGREE

The average amount borrowed by a student receiving a master's degree is $34,900. The table below shows monthly payments and the total repaid under three different repayment options.

*Interest rate of 6.8% (the current rate during repayment or forbearance).

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Students who work full-time in public service jobs may qualify for forgiveness of the balance due on their eligible federal student loans after making 120 monthly payments under certain repayment plans. For more information, see the U.S. Department of Education’s Public Service Loan Forgiveness webpage or click on the link at left to download a PDF fact sheet about this program.

If you are having trouble making your loan payments, you might qualify for a deferment, forbearance, or other form of payment relief. See the U.S. Department of Education’s information on Postponing Repayment.

• PERKINS, HEALTH PROFESSIONS, AND NURSING LOANS

You can estimate your monthly payments on your Perkins, Health Professions, or Nursing Loan using FinAid's Loan Calculator.

Enter the interest rate (5%), the loan term (10 years), and the minimum payment ($40). You will also need to enter the loan balance, which is shown on the View Student Loan Summary page of Wolverine Access. (Log in to the Student Business section of Wolverine Access and select Financial Aid > Aid Year > Loans > View Student Loan Summary.)

Once you've entered the required information in the calculator fields, click Calculate.  If you select Print Payment Schedule, you will receive detailed information about your repayment schedule.  

• PRIVATE LOANS

You can also use FinAid's Loan Calculator to estimate your monthly payments for a private loan. (For more about private loans,visit this page.)

Your interest rate, loan term, and minimum monthly payment are all shown on the master promissory note for the loan. You will also need to enter the loan balance, which is shown on the View Student Loan Summary page of Wolverine Access. (Log in to the Student Business section of Wolverine Access and select Financial Aid > Aid Year > Loans > View Student Loan Summary.)

Once you've entered the required information in the calculator fields, click Calculate.  If you select Print Payment Schedule, you will receive detailed information about your repayment schedule.  

Federal loan borrowers can combine different types of federal loans with various repayment schedules into a Direct Consolidation Loan with one single monthly payment. For more information about this option, see our page on Federal Loan Consolidation.

New for 2012 only: The U.S. Department of Education is offering a Special Direct Consolidation Loan to eligible borrowers through June 30, 2012. This is different than a traditional Federal Direct Consolidation Loan. For more details about this short-term program, visit this website.

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