Student Loan Services - Repayment Plans

Five (5) repayment plans are available to fit a variety of individual income levels as you repay your student loan. The following information should assist you in making an informed decision concerning repayment of your student loan. Occasionally, you should review your repayment plan to be sure it continues to meet your particular financial needs. If your needs change, you may select another repayment option at any time.

Remember: There is no prepayment penalty under any of these repayment options. If you choose to accelerate your monthly payments, you will decrease your financing costs.

Standard Repayment Plan

This Plan allows you to pay off your loan in equal monthly installments over a period of up to ten years. Your monthly payment will be at least $50.00, but may be more depending upon the total amount you borrowed. If your loan has a variable interest rate, it will be adjusted on July 1 of each year. This option allows you to pay off your loan quickly and is the least expensive repayment plan, because the smallest amount of interest is paid.

Graduated Repayment Plan

This Plan allows you to gradually increase your loan payment; however, it will not allow any single payment to be more than three times greater than any other monthly payment. The payment amount may be less than $50.00* per month, as long as your total loan is repaid within ten years. This plan may best suit your needs if you want a lower monthly payment when you first begin repaying your student loan, but anticipate a larger monthly payment will be manageable as your income increases.

Income-Sensitive Repayment Plan

This Plan allows your monthly payments to increase or decrease based on your income. Your lender/servicer will request documentation of your income, and will adjust your repayment schedule accordingly. However, it will not allow any single payment to exceed three times any other monthly payment. The payment amount may be less than $50.00* per month, as long as your total loan is repaid within ten years.

Extended Repayment Plan

This Plan allows you to extend your monthly payments up to 25 years only if, you were a first time borrower on or after October 7, 1998, and you have an outstanding balance of more than $30,000 in Federal Family Education Loans.
Income Based Repayment This Plan allows your monthly payment amount to be based on your income, family size, and outstanding balance on eligible loans. Your eligibility to participate in this plan is reevaluated each year, and the minimum required monthly payment may be adjusted as a result.

* Your monthly payment must be equal to at least the interest that acccrues during the interval between schedule payments.

If you experience difficulty making your payments at any time during your repayment period, please contact SIMMONS FIRST to assist you in determining the best repayment plan to meet your needs. You may qualify for a deferment or forbearance of your loan payments based upon certain conditions.