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Repayment Options
If you are having trouble repaying your student loan, ask your lender about income sensitive or the graduated repayment plans. These are not automatic, you must request them. Remember, prompt payments will help you establish good credit.
Standard Repayment
You will automatically receive a Standard Repayment Plan unless you request either the Income Sensitive or Graduated Repayment Plan. The Standard Repayment Plan has a set payment amount for the life of your loan. You can use the Estimated Standard Repayment Calculator to get monthly repayment estimates.
Income Sensitive Repayment
Payments are adjusted annually based on your current income. Payments must cover at least the interest that accrues
between scheduled payments. Estimate your monthly payment and monthly interest payment by using the
Income Sensitive Repayment Calculator.
If you want to request this option, please print the Income Sensitive Repayment Plan form, sign, and return it along with documentation of your monthly income to Student Loan Services at Bank of North Dakota or call 1-800-472-2166 ext. 5660.
Graduated Repayment
Under this plan, payments start low and gradually increase during your repayment. This plan may be good for you if you anticipate your income will increase in the future.
Extended Repayment
The payment term may be extended up to 25 years if the loan balance is
$30,000 or more. Contact Bank of North Dakota to check if you
qualify for this repayment option.
Income Based Repayment (IBR)
Effective July 1, 2009, this plan is available for all Federal Family Education
Loan Program (FFELP) loans with the exception of Parent Loans for Undergraduate
Students (PLUS) made to parent borrowers and federal Consolidation loans
that include PLUS loans. All private/alternative loans are not eligible.
Under this plan, the required monthly payment amount will be based on a
borrower's household adjusted gross income (AGI) and family size. A borrower
must qualify for a partial financial hardship. Partial financial hardship
occurs when the annual amount due on all of the borrower's eligible loans
(as calculated under a standard 10-year repayment plan) exceeds 15% of
the difference between the borrower's AGI and 150% of the poverty guideline
for the borrower's family size. A borrower must recertify their AGI and
family size annually and the monthly payment amount may change each year.
Please contact Bank of North Dakota to see if you qualify for this repayment
option. Note: Please make sure that you have your household AGI information when
calling. This information is required in determining your eligibility.
If you repay under this plan and meet other requirements over a specified
period of time, you may qualify for cancellation of any outstanding balance
of your loan.
Estimated Standard Repayment Calculator
Use the calculator below to get an estimate of what your future monthly payments would be for your federal student loan. The actual amount that your loan holder calculates may vary.
Student loan repayment periods typically last 120 months (10 years), and interest rates range from 2.77 to 9 percent. Most federal student loans require minimum monthly payments of $50.
The minimum annual salary calculation is based on the financial aid industry recommendation that student loan payments not exceed 8 percent of your gross income. The calculation does not consider high credit card debt or other unsecured debt.
For more information, contact your lender/servicer.
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