Loan Repayment

Tools and Resources

As you begin to navigate loan repayment, you may want to explore the following online tools and resources:

General Loan Repayment Resources

Resources

Calculators

Federal Loan Repayment

The Standard Repayment Plan

A Standard Repayment Plan with a fixed annual repayment amount paid over a fixed period of time not to exceed 10 years.

The Graduated Repayment Plan

Paid over a fixed period of time not to exceed 10 years. With this plan, your payments start with a relatively low amount and then increase, generally every two years.

The Extended Repayment Plan

With a fixed annual or graduated repayment amount to be paid over a period not to exceed 25 years. If you’re a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans to be eligible for this plan. If you’re a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans This means, for example, that if you have $35,000 in outstanding FFEL Program loans and $10,000 in outstanding Direct Loans, you can choose the extended repayment plan for your FFEL Program loans but not for your Direct Loans. Your monthly payment will be lower than it would be under the Standard Plan, but you’ll ultimately pay more for your loan because of the interest that accumulates during the longer repayment period.

Income Driven Repayment Plans

Income-Based Repayment (IBR) Plan

The Income-Based Repayment Plan became available July 1, 2009. To qualify for the IBR Plan, you must have a partial financial hardship. Under this plan, during any period when you have a partial financial hardship, your required monthly payment amount will not exceed 15 percent of the difference between your adjusted gross income and 150 percent of the Federal Poverty Guideline amount for your family size and state. For assistance in calculating potential monthly payments under this plan, please see the IBR calculator. You are considered to have a partial financial hardship if the amount you would be required to repay on your eligible student loans under a Standard Repayment Plan with a 10-year repayment period is more than the amount you would be required to repay under the IBR Plan. If you repay under this plan and meet certain other requirements over a 25-year period, any remaining balance on your loans may be canceled. Contact the Direct Loan Servicing Center (for Direct Loans) or your FFEL lender (for FFEL Program loans) for more information about the IBR Plan.

Pay As You Earn Repayment Plan

Monthly payments are 10% of discretionary income, the difference between your adjusted gross income and 150% of the poverty guideline for your family size and state of residence (other conditions may apply). You must also prove partial financial hardship. Additionally, you must be a new borrower on or after October 1,  2007, and must have received a Direct Loan disbursement on or after October 1, 2011. If you repay under the Pay As You Earn Plan and meet certain other requirements over a 20-year period, the unpaid portion may be forgiven. You may have to pay tax on the amount that is forgiven.

Income-Contingent Repayment Plan

With an income-contingent plan, payments are calculated each year based upon your adjusted gross income, family size, and your total Direct Loan borrowing amount. If you repay under this plan and meet certain other requirements over a 25-year period, the unpaid portion may be forgiven. You may have to pay tax on the amount that is forgiven.

Income-Sensitive Repayment Plan (FFEL Loans only)

With an income-sensitive plan, your monthly loan payment is based on your annual income. As your income increases or decreases, so do your payments. The maximum repayment period is 10 years. Ask your lender for more information on FFEL Income-Sensitive Repayment Plans.

 

Private Loan Repayment

If you borrowed private loans, you can view those outstanding loans directly on your lender’s website.  Most lenders offer 15 or 20 years to repay this loan type.  Repayment begins usually 6 months after graduation or 6 months after you drop below 6 credits, whichever happens first.

If you borrowed any Columbia Institutional Loans or Perkins Loans, you will manage your loan repayment with University Accounting Service (UAS).  Please visit the University Accounting Service (UAS) website to set up an account.

Loan Forgiveness

Public Service Loan Forgiveness

Federal Loan Forgiveness Program is called Public Service Loan Forgiveness (PSLF). To qualify, you must have made at least 120 payments on non-defaulted federal loans under certain repayment plans while holding a full-time, public service position. For further details such as borrower eligibility requirements and what constitutes a public service position, please visit the Federal Student Aid website. Be sure to also review the Questions & Answers section.

CBS Loan Assistance

Columbia Business School’s Loan Assistance Program aims to encourage MBAs to take management and leadership positions in the public and nonprofit sectors, and with social ventures. The program was created to help alleviate the financial burden associated with repaying education loans while pursuing a career in these sectors, which typically pay lower salaries but have unmet needs that Columbia Business School graduates are able to address.

International and US-based MBA graduates are eligible to apply within the first five years after the date of graduation, and may be eligible to participate for up to ten years after graduation. Awards are based on annual income and education debt level.

To learn more about the program and eligibility criteria please visit the Loan Assistance Program page.

Company Sponsorship

Company sponsorship can provide excellent opportunities for reimbursement of educational costs already funded by students through loans. You should contact your company to explore any resources at their disposal.

The Biden-Harris Administration Student Debt Relief Plan

Visit the Federal Student Aid site to get the latest updates on the Biden-Harris Administration’s student debt relief efforts.

 

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