You are responsible for paying back
your student loan in a timely manner.

If you received a student loan, you are responsible for paying it back in a timely manner regardless of whether you graduated and received a degree or not. For parents with PLUS loans, even if the student for whom you obtained the PLUS Loan is unemployed or has not graduated, you are still required to repay the loan.

Almost everyone goes through a difficult financial time and sometimes it just takes a little bit longer to get established after leaving school. OSLA will work with you to help you avoid defaulting on your student loans.

Following is an overview of repayment options for OSLA serviced loans. There is no penalty for early repayment under any of our payment options. To discuss your situation, please contact an OSLA Customer Service Expert.

Standard Repayment

This is a level payment plan with regular interest and principal payments due each month. The minimum payment is $50 a month, but may be more depending on the amount borrowed. The loans have a maximum repayment term of 10 years. This type of repayment schedule is highly recommended to all who can budget a level loan payment on a monthly basis and may result in paying off the loan faster.

Graduated Repayment

Monthly payments on this plan are lower in the beginning and increase at 24-month intervals until the loan is repaid within the maximum repayment term of 10 years. This type of repayment schedule is generally recommended for professionals who cannot afford Standard Repayment in the beginning, but anticipate their income to significantly increase over time thus allowing them to make higher payments.

Income Sensitive Repayment

This payment plan is adjusted annually based on monthly income and the total amount of student loan debt. This type of payment can be used for a maximum of five years and is renewable by request every 12 months. Payments will return to either a level or graduated repayment plan when the Income Sensitive Repayment period ends. The interest you will pay over the life of the loan will be significantly higher because of the extended repayment term. Therefore, this is only suggested for those who cannot afford Standard or Graduated Repayment terms due to a low monthly income.

Income-Based Repayment (IBR)

Effective July 1, 2009, an Income-Based Repayment Plan is available for all FFELP loans with the exception of PLUS loans made to parent borrowers and Consolidation loans that include PLUS loans made to parent borrowers. Under this plan, the required monthly payment amount will be based on a borrower’s income during any period when the borrower has a partial financial hardship. The maximum repayment period under this plan may exceed 10 years. Eligible borrowers who meet certain requirements over a specified period of time may qualify for cancellation of any outstanding balance on their loans.

For additional information, please visit OSLA IBR or the Department of Education website at

Extended Repayment

The extended repayment schedule is available to borrowers whose first loan was disbursed on or after July 1, 1993. Then, only those loans actually disbursed on or after October 7, 1998, with an outstanding balance of principal and interest in FFELP loans totaling $30,000 or more are eligible for Extended Repayment. The lender may schedule the borrower for standard or graduated installments over a period not to exceed 25 years. This repayment option is available upon borrower request.


After a substantial portion of a loan has been paid, it may be possible to refinance (recalculate the monthly payment to a lesser monthly payment amount) the unpaid amount owed over the remaining repayment term.