Loan Management

ATOM is committed to offering a quality education at a reasonable cost.  In an effort to manage  student indebtedness, ATOM encourages students to explore a variety of funding sources for  their education. In instances where other funding sources are limited or do not exist and students choose to fund their ATOM education through student loans, ATOM encourages students to engage in careful budgeting.  Good financial management before, during, and after enrollment can keep overall debt within reasonable limits.


The Financial Aid Office is available to help advise students on how to develop a personal budget. Careful budgeting can help minimize the amount a student needs to borrow.

Budgeting and Borrowing Overview


Source: 2012 US Dept. of Education Federal Student Aid Conference


Loan Repayment

Selection of the appropriate repayment plan for Direct Loans is essential, and can save money in the long run.

Payment plans should be selected during the grace period. Borrowers who do not select a payment plan are automatically enrolled in the Standard (10 Year) Repayment Plan. To enroll in a different repayment plan, borrowers should contact their loans servicer. Loan servicer information can be found via the National Student Loan Data System.

The repayment plans outlined below are available for federal Direct Subsidized, Unsubsidized, and PLUS loans for graduate students. If you need assistance selecting a repayment plan, please contact the loan servicer.

Standard Repayment Plan

A borrower is automatically enrolled in the Standard Repayment Plan (SRP) if he/she does not elect a different plan. The SRP allows a borrower to repay a loan over a maximum of ten years, making monthly payments of a fixed amount until the loan is paid in full. Because the loan is repaid in the shortest amount of time, the SRP offers the lowest, overall cost of loan repayment. As a result of the short time frame for repayment, monthly payments under the SRP are higher than under other plans, but borrowers may pay the least amount of total interest.

Extended Repayment Plan

To be eligible for the Extended Repayment Plan (ERP), a borrower must have more than $30,000 in Direct Loan debt and must not have an outstanding balance on a Direct Loan as of October 7, 1998. The ERP allows a borrower to repay a loan over a maximum of 25 years, making monthly payments of a fixed amount until the loan is paid in full (for the ERP graduated payment option, see “Graduated Repayment Plan” below). The fixed monthly payment is lower under the ERP than under the SRP; however, the borrower ultimately pays more for the loan because of the interest that accrues during the longer repayment period.

Graduated Repayment Plan

Under the Graduated Repayment Plan (GRP) the monthly payment amount increases every two years throughout the repayment period. Monthly payments in the beginning of the repayment period are typically lower under the GRP than under the SRP; however, monthly payments at the end of the GRP repayment period are typically higher than under the SRP. The GRP repayment period is 10 years; however, borrowers with high loan balances may be eligible for a GRP with a 25 year repayment period. Finally, under the GRP, the monthly payment is never less than the interest that has accrued between payments, and no single payment is more than three times greater than any other payment.

Income Based Repayment Plan

The Income Based Repayment Plan (IBR) caps a borrower’s required monthly loan payment at an amount intended to be affordable based on the borrower’s income and family size. The IBR is available for borrowers who experience a partial financial hardship after graduation. The primary benefit of IBR comes in the form of 25-year loan cancellation. A borrower who makes 25 years of qualified payments under IBR may be eligible for cancellation of the remaining amount of their loan.

The Department of Education offers an IBR calculator that can help borrowers determine eligibility and calculate an initial monthly payment.

Under the IBR, a borrower’s monthly payment is less than the required monthly payment under the SRP. Although lower monthly payments may benefit a borrower, lower payments may result in a longer repayment period and additional accrued interest. For IBR borrowers whose monthly payment amount is less than the monthly accrued interest on the loan, the federal government offers an Interest Payment Benefit. Under this benefit, the federal government pays the unpaid, accrued interest on Direct Subsidized loans for up to three consecutive years from the beginning of IBR.

Pay As You Earn Plan (PAYE)

Under this plan, eligible loans are Direct Subsidized and Unsubsidized loans, Direct Graduate PLUS loans, Direct Consolidation loans from students not parents. With this plan, your maximum monthly payments will be 10 percent of discretionary income and the payment will change as your income changes. A borrower will have up to 20 years to repay.

You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You must have financial hardship. Your monthly payments will be lower than payments under the 10-year standard repayment plan. You’ll pay more for your loan over time than you would under the 10-year standard plan. Your outstanding loan will be forgiven, if you have not repaid your loan in full after you have made the equivalent of 20 years of qualifying monthly payments. However, you may have to pay income tax on any amount that is forgiven.

Income Contingent Repayment (ICR)

The Income Contingent Repayment Plan (ICR) caps the required monthly loan payment at 20% of all earnings above the federal poverty level. Monthly payments are recalculated annually, based on the borrower’s adjusted gross income (AGI, including spouse’s income for married borrowers), family size, and total Direct Loan debt. The Department of Education offers an ICR calculator that can help borrowers determine eligibility and calculate an initial monthly payment.

The maximum repayment period for the ICR is 25 years. If, after 25 years of payments, a borrower has not fully repaid his/her loans, the unpaid portion of the loan is forgiven. It is important to note that time spent in deferment or forbearance does not count toward the 25 year period and that a borrower may be required to pay taxes on the amount the loan that is forgiven.

Income-Sensitive Repayment Plan (ISR)

Eligible loans include Federal Stafford Subsidized and Unsubsidized loans, FFEL PLUS loans and FFEL Consolidation loans. Your monthly payment is based on annual income. Payments will change as your income changes and you have up to 10 years to repay. You will pay more for your loan over time than you would under the 10-year standard plan. Each lender’s formula for determining the monthly payment amount under this plan can vary.

Loan Consolidation

Federal Student Loan Consolidation Program

Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan.

The process of consolidation offers several advantages, including:

  • Direct PLUS Loans may be consolidated with other eligible student loans into a single consolidation loan after graduation;
  • all loans are held by one bank or agency, creating one, single, monthly payment for the borrower and making communication with the lender/servicer more convenient;
  • consolidation loans offer many of the same repayment plans as federal Direct Loans (SRP, ERP, ICR, IBR) and, by consolidating, borrowers may have the opportunity to change a previously selected repayment plan;
  • consolidation may renew exhausted deferment options on original loans;
  • the minimum required monthly payment on a consolidation loan may be lower than the combined payments charged on multiple federal loans;
  • borrowers retain their subsidy benefits on subsidized loans that are consolidated; and
  • consolidation reduces the likelihood of delinquency and default, since payments are more manageable.

There may also be some disadvantages to consolidation, including:

  • if consolidation extends the repayment period, the overall cost of the loan will increase;
  • borrowers who consolidate Direct Subsidized/Unsubsidized Loans while those loans are in an in-school status, will lose the grace period on those loans; and
  • borrowers who consolidate Direct PLUS Loans with a first disbursement date of July 1, 2008 or later will lose the six month possible post-enrollment deferment period on those loans.

For more information about the Loan Consolidation Program contact your lender or the current holder of your loan(s) or to apply for a Direct Consolidation Loan online or by phone (1-800-557-7392).

Repayment: How to Manage Your Student Loans


To obtain resources, tools, repayment information and financial awareness counseling log sign in at The financial awareness counseling tool includes online modules to help a borrower budget and estimate repayment amounts.

The following are some repayment plan calculators to assist you in gauging in borrowing responsibly. Remember, to estimate your monthly payments, you must know your loan interest rate. The NSLDS Access allows you to view your current loan interest rate.

Income-Based Repayment Calculator

Pay as You Earn Repayment Calculator

Income-Contingent Repayment Calculator

Direct Loan Repayment Calculators

Poverty Guidelines for 2013-2014

Accessing Your Loan Accounts

NSLDS and Direct Loan Account Access

Monitoring is an important part of loan management, and ATOM encourages all students/graduates to check the status of their federal loans on a regular basis. Borrowers can access their federal student loan history through the National Student Loan Data System (NSLDS). Borrowers can access their Direct Loan accounts through the Direct Loan website. For each of these websites, borrowers will need their:

  • social security number;
  • first two (2) letters of their last name;
  • date of birth; and
  • PIN number (FAFSA).

Loan Servicers

Any Loan Servicer provides the repayment options available. It is important to keep their contact information available should you ever need to request postponing repayment by a deferment or forbearance at any time.

Nelnet 1-888-486-4722
Great Lakes Educational Loan Services, Inc. 1-800-236-4300
Sallie Mae 1-800-722-1300
FedLoan Servicing (PHEAA) 1-800-699-2908
Direct Loan Servicing (ACS) 1-800-848-0979

The Office of the Ombudsman is the mediator acting on behalf of the student and the loan servicer. The Federal Student Aid Ombudsman Group of the U.S. Department of Education is dedicated to helping resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans. If a servicer does not abide by offering repayment options to a borrower, the borrower should contact this office to mediate on behalf of the student to resolve the issue.

The Ombudsman Group recommends gathering certain information prior to first contacting them.

U.S. Department of Education
FSA Ombudsman Group
830 First Street, N.E.
Fourth Floor
Washington, DC 20202-5144