Repayment Options
Use the table below to help you find which repayment option is best for you.
| Repayment Options | Interest Rate |
Standard Repayment
- Repayment period – 10 years
- Pay down principal and interest each month
- Lowest total cost (other than prepayment)
- Consistent monthly payments
- Minimum $50 monthly payment
| For loans disbursed after 7-1-08, subsidized Stafford Loans for undergraduate students will be at a fixed interest rate of 6% fixed rate. Subsidized Stafford Loans for graduate students and all Unsubsidized Stafford Loans will be at a fixed interest rate of 6.8% fixed rate.
.
8.50% fixed rate for Parent PLUS Loans* and Graduate PLUS Loans
Loans made prior to 7/1/2006 will still remain variable.
|
Graduated Repayment
- Repayment period – 10 years
- Make smaller payments at first, then larger payments over
the remaining years
- Payments may be easier to manage straight out of school, but you’ll pay more interest over the life of the loan
- Assumes your income will grow to cover your payment over time
- Your lender will set your minimum payment
| As of 7/1/08, the interest rates are:
6% fixed rate for subsidized Stafford Loans (in-school, grace, deferment) and 6.8% fixed rate for unsubsidized Stafford Loans (in-school, grace, deferment).
8.50% fixed rate for Parent PLUS Loans* and Graduate PLUS Loans
|
Extended Repayment
- Repayment period – 25 years
- Take more time to pay back your loans
- Choose a standard or graduated repayment schedule (see above)
- Your lender will set your minimum monthly payment, which
must be at least equal to the amount of interest due
- You may qualify if you have more than $30,000 in Federal
Loans
| As of 7/1/08, the interest rates are:
6% fixed rate for subsidized Stafford Loans (in-school, grace, deferment) and 6.8% fixed rate for unsubsidized Stafford Loans (in-school, grace, deferment).
8.50% fixed rate for Parent PLUS Loans* and Graduate PLUS Loans
|
Income-Sensitive Repayment
- Repayment period – 10-15 years
- Adjust your payments annually based on your income
- Your lender will set your minimum payment based on your income documentation
- Monthly payments generally range from 4 to 25 percent of your gross monthly income
- Repayment period can be extended annually, up to five years
|
As of 7/1/08, the interest rates are:
6% fixed rate for subsidized Stafford Loans (in-school, grace, deferment) and 6.8% fixed rate for unsubsidized Stafford Loans (in-school, grace, deferment).
8.50% fixed rate for Parent PLUS Loans* and Graduate PLUS Loans |
*Interest rates are effective 7-1-2008. The rates and other information set forth above have been obtained from sources deemed reliable, but do not constitute representations of Commerce Bank, nor shall this be considered an offer by Commerce Bank to fund any loan at rates other than those established by the United States Department of Education.
Questions?
When you're ready to start paying off your loan, we're here to help. We'll ask listen solve to help you find the solution that is right for you.
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