Student Loans must be repaid! Whenever a student graduates, withdraws, or drops below half-time enrollment, the student's six-month grace period begins. Six months later, the student must begin to repay the student loan(s). Plan for repayment from the time the first loan is received!

Shown below are the average loan indebtedness figures for Federal Direct Stafford/Ford Loans for student borrowers who were enrolled at Southern Illinois University Carbondale (SIUC) during the 2004-2005 academic year. The potential monthly payments under different payment plans are provided for each level of debt. The monthly payments included in the repayment plan are based on the SIUC average loan indebtedness amounts using the maximum interest rate of 8.25%. Actual amounts may vary depending on individual indebtedness and the actual interest rate in effect at the time of repayment.

After you leave school or drop below half-time enrollment, you will select a repayment plan. If you don't choose a plan, you will be provided the Standard Repayment Plan. You may change plans at any time for any reason.

The U.S. Department of Education's Direct Loan Servicing Center will help you manage your loans until they are paid in full. The Servicing Center is your best source of information about loan repayment options and loan consolidation. Contact the Direct Loan Servicing Center on-line or at:

There are a variety of loan repayment plans designed to meet the needs of almost every borrower. Student borrowers may repay their Federal Direct Stafford/Ford Loans through one of four repayment plans

1. Standard Repayment Plan - Using standard repayment, students pay a fixed amount each month until the loans are paid in full. Monthly payments will be at least $50. Loans must be repaid in 10 years (or less depending on the total amount owed.)

    

2. Extended Repayment Plan - Using extended repayment, students pay a fixed amount each month of at least $50, but can take from 12 to 30 years to repay the loans. The length of the repayment period will depend on the total amount owed.

    

3. Graduated Repayment Plan - Using graduated repayment, students pay a fixed amount each month with the fixed amount increasing every two years. The length of the repayment period will depend on the total amount owed.

    

4. Income Contingent Repayment Plan - Using income contingent repayment, students pay a fixed amount each month with the fixed amount being determined each year based on annual income and the total amount owed.

    

A deferment temporarily postpones payment on your loans. You may be eligible for deferment for a variety of reasons. You may be eligible for deferment if you are:

 

Pursuing at least half-time study at an eligible school

 

In a graduate fellowship program approved by the U.S. Department of Education

 

In a rehabilitation training program for individuals with disabilities that has been approved by the U.S. Department of Education

 

Conscientiously seeking but unable to find full-time employment (for up to 3 years)

 

Experiencing economic hardship (for up to 3 years)

 

Serving in the U.S. Armed Forces, in the Peace Corps, or in the Commissioned Corps of the Public Health Service (for up to 3 years)

 

Serving as a full-time paid volunteer for ACTION programs or an approved tax-exempt organization (for up to 3 years)

 

"Temporarily totally disabled" according to the certification of a qualified physician or unable to work because you must care for a spouse who is disabled (for up to 3 years)

 

Engaged in an internship or residency program (for up to 2 years)

 

Serving in the National Oceanic and Atmospheric Administration Corps (for up to 3 years)

 

Teaching full-time in an area determined by the Department of Education to be a teacher shortage area (for up to 3 years)

 

A mother of a preschool-age child, who has entered or re-entered the work force within the preceding year in a full-time position at a salary not more than $1 above the minimum wage (for up to 1 year)

 

On parental leave for a period in which you are pregnant, caring for your newborn or newly adopted child (for up to 6 months)

 

The borrower must contact the Direct Loan Servicing Center to apply for a deferment or a forbearance (the temporary postponement or reduction of loan payments for a limited and specified period or an extension of time to make your loan repayments). The Direct Loan Servicing Center will provide the appropriate forms to fill out and return.