The results in this chart assume that the student is making regular monthly payments on any unsubsidized loans and is not capitalizing the interest while in school. If the interest is capitalized, (added to the outstanding principal balance) the cumulative payments and total interest charges will be higher than shown in the chart.

EXAMPLES OF TYPICAL DIRECT AND FFEL STAFFORD LOAN REPAYMENTS

Estimated Monthly Payments and Total Amounts Repaid Under Different Repayment Plans For Direct Loans Only: Income Contingentc (Income - $25,000)
Initial Debt When You Enter Repayment Standard
Not to exceed 10 years		 Extendeda Graduatedb
Not to exceed 10 years		 Single Married/HOHd
  Per Month Total Repaid Per Month Total Repaid Per Month Total Repaid Per Month Total Repaid Per Month Total Repaid
$3,500 $50 $4,471 Not Available Not Available $25 $5,157 $27 $6,092 $25 $6,405
$5,000 $58 $6,905 Not Available Not Available $40 $7,278 $38 $8,703 $36 $9,150
$7,500 $83 $10,357 Not Available Not Available $59 $10,919 $57 $13,055 $54 $13,725
$10,500 $121 $14,500 Not Available Not Available $83 $15,283 $80 $18,277 $76 $19,215
$15,000 $173 $20,714 Not Available Not Available $119 $21,834 $114 $26,110 $108 $27,451
$40,000 $460 $55,239 $227 $83,289 $316 $58,229 $253 $72,717 $197 $84,352

Payments are calculated using the fixed interest rate of 6.8 percent for student borrowers for loans made on or after July 1, 2006.

aFor a FFEL borrower, the requirement is that the borrower (1) must have had no outstanding balance on a FFEL Program loan as of October 7, 1998, or on the date the borrower obtained a FFEL Program loan on or after that date, and (2) must have more than $30,000 in outstanding FFEL Program loans. For a Direct Loan borrower, the requirement is that the borrower (1) must have had no outstanding balance on a Direct Loan Program loan as of October 7, 1998, or on the date the borrower obtained a Direct Loan Program loan on or after that date, and (2) must have more than $30,000 in outstanding Direct Loan Program loans. The amount were rounded to the nearest dollar and were calculated based on a 25-year repayment plan.

bThis is an estimated monthly repayment amount for the first two years of the term and total loan payment. The monthly repayment amount will generally increase every two years, based on this plan.

cAssumes a 5 percent annual growth (Census Bureau) and amounts were calculated using the formula requirements in effect during 2006.

dHOH is Head of Household. Assumes a family size of two.

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