Graduated Repayment

You can lower your payments for awhile—without extending your repayment period—if you opt for graduated repayment. If you don’t make a lot of money—but think you will in the future—this plan might be right for you.

Remember, it may seem like a good option to pay a smaller amount now, but those payments will grow in the future. When choosing this schedule, make sure to plan for those larger payments.

How It Works

  • Graduated repayment lets you pay just the interest on your loan for up to 4 years.
  • Some servicers will increase your payments after 2 years.
  • Payments then increase gradually so the loan is repaid in the same amount of time (10 years) as it would be under standard repayment.
  • Graduated repayment can increase the total amount of interest you pay. This means your loan may cost more than if you repaid it under standard repayment.

See what your payments could look like under this schedule with our graduated repayment calculator.

Changing Your Repayment Schedule

There is no form for changing to the graduated schedule, but some servicers will ask for a written request.  

If you have any questions about the plan, you can contact American Student Assistance® (ASA). Our counselors can help you decide if this plan is right for you. We can also call your servicer with you.