There are income-sensitive repayment options available to U.S. federal

student loan A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest ...

borrowers, allowing

Federal Family Education Loan Program The Federal Family Education Loan (FFEL) Program was a system of private student loans which were subsidized and guaranteed by the United States federal government. The program issued loans from 1965 until it was ended in 2010. Similar loans ...

borrowers to decide what percentage of their income their loan payment will be.American Student Assistance
Retrieved on June 9, 2010 The borrower selects a monthly payment amount between 4–25% of his or her monthly income. The payment must be greater than or equal to the

interest In finance and economics, interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct f ...

accruing on the loan. The borrower must reapply for this schedule every year. It is available for up to 5 years. After 5 years, the borrower will need to choose another repayment schedule. The borrower may have up to 10 additional years under a new schedule. Income-sensitive repayment extends the repayment period. As a result, the total amount paid in interest may be greater than what the borrower would pay under standard repayment.

References

Student financial aid in the United States {{US-finance-company-stub