Graduated Repayment

Graduated repayment allows borrowers to begin repaying their loan(s) at a lower payment amount than normal. Every two years, the payment amount will increase until the balance of the loan is repaid within the maximum repayment term applicable to the loan. Your monthly payments will never be less than the amount of interest that accrues between your payments, and they will never be more than three times greater than any other payment. Overall, borrowers will pay more in interest, but the initial payments are lower than the standard repayment plan.