At WyoLoan, we offer several repayment options. Since each repayment strategy has its advantages and disadvantages, the one that’s right for you depends on your specific situation. The key is to choose a plan that you can afford but that pays off the loan as quickly as possible. The longer you extend the repayment period and the more you lower your payments, the greater your total interest costs. There’s no penalty for paying off your loans early.
Stafford loans made on or after July 1, 2006 have a fixed interest rate of 6.8%. After periods of deferment or forbearance, your monthly payment amount will adjust accordingly in order to ensure the loan is fully paid over the remaining repayment period.
Parent PLUS and Graduate PLUS loans made on or after July 1, 2006 have a fixed interest rate of 8.5%. After periods of deferment or forbearance, your monthly payment amount will adjust accordingly in order to ensure the loan is fully paid over the remaining repayment period.
Parent PLUS loans made prior to July 1, 2006 have a variable interest rate. The maximum interest rate cannot exceed 9%. The interest rate is adjusted annually on July 1st.
Stafford loans made prior to July 1, 2006 have a variable interest rate. The maximum interest rate cannot exceed 8.25%. The interest rate is adjusted annually on July 1st.
Payment options:
Standard Repayment
As the most common loan repayment option, standard (or level) payment minimizes your total interest costs, although it may have higher monthly payments than other options. The loan is paid in equal monthly installments over a period not to exceed ten years, excluding deferments and forbearance. The minimum monthly installment amount is $50. Loans with smaller balances will be repaid in fewer than ten years. Eligible loans include subsidized and unsubsidized Stafford, Graduate PLUS, Parent PLUS, and Consolidation loans.
Advantages:
- Predictable payment schedule
- Pays loan off quickly
- Minimizes total interest cost
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Graduated Repayment
Graduated repayment starts with lower monthly payments. Your payment will increase at certain intervals, such as every two years, until your loan is paid in full. Less money goes toward the principal in the early years, which will increase the amount of money you pay towards interest. Your initial period of monthly payments must cover the accruing interest, and the loan must be paid in a period not to exceed ten years, excluding deferments and forbearance. Eligible loans include subsidized and unsubsidized Stafford, Graduate PLUS, Parent PLUS, and Consolidation loans.
Advantages:
- Low initial payments
- Predictable payment structure
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Extended Repayment
Extended repayment is available to those who owe $30,000 or more and all of the loans were made after October 7, 1998. You may choose standard (level) or graduated repayment. The term is extended to 25 years, excluding deferments and forbearance, which may lead to higher interest costs. Eligible loans include subsidized and unsubsidized Stafford, Graduate PLUS, Parent PLUS, and Consolidation loans.
Advantages:
- Extended term allows for lower payments
- Predictable payment structure
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Income-sensitive Repayment
Income-sensitive payments are low initially and increase as income rises. Income-sensitive repayment works well if you are in danger of default, or your income will start low but will increase steadily, or you are going to pursue a low-paying job. Reduced payment amounts at the beginning of the loan and extending the repayment period will increase total interest costs.
We will work with you to establish a payment that takes into account your current gross monthly income and accruing interest. Payment amounts can be adjusted annually to account for changes in your income.
Income-sensitive payments are allowed for a period of five years. The loan period of ten years can be extended to fifteen years using a special forbearance provision. The ten-year period excludes deferments and forbearance. The minimum monthly installment must be enough to cover accruing interest. Eligible loans include subsidized and unsubsidized Stafford, Graduate PLUS, Parent PLUS, and Consolidation loans.
Advantage:
- Payments can be adjusted to reflect changes in income
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