Students who take out Federal direct loans are not required to make repayment while they are in school. Direct loan repayment begins six months after a student graduate or when the student drops to less than half time status. Students have a number of options available for direct loan repayment.

One of the options that students can select is their repayment plan. There are several different repayment plans available which range from ten years of repayment to twenty five years of repayment. The standard repayment plan is one of the most common direct loan repayment plans. This plan has 120 payments and will charge borrowers the lowest amount of interest. Your monthly payment will be at least $50.

Another repayment plan is the graduated repayment plan. This payment plan has varying payment amounts which change every two years. Borrowers are able to start their repayment slowly and increase their payment as they have a stronger salary. This repayment plan is most common for borrowers who are working in a profession with a low starting salary.

Automated payments can be utilized for direct loan repayment. These automated payments are automatically deducted from a checking or savings account of your choice. Borrowers have their payment made automatically and do not have to remember to mail their payment. Automated payments also offer a 0.25% interest rate reduction for every statement period that automated payments are used.

Federal loan servicing companies offer a number of options for consumers who may be having trouble with direct loan repayment. Borrowers are able to change repayment plans, utilize a deferment or apply for forbearance of their loans. These options can allow borrowers who have recently lost a job, been hospitalized or are experiencing difficult economic times to fulfill their student loan obligations. Students should contact their Federal loan servicing company as quickly as possible to utilize direct loan repayment options available to them.