Students have five repayment options:

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year.  However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment.  Interest will continue to accumulate, but will no longer be capitalized.  The maximum repayment period is 25 years.  If you have not fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged.  You may however, have to pay taxes on the amount that is discharged.

 Last Modified 7/22/13