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Alternative Repayment Plans

For maximum flexibility in the repayment of your Federal Direct Loan Program (FDLP) loan(s), we offer the following Alternative Repayment Plans. These options are only available when you are unable to repay your loans under the Standard, Graduated, Extended, Income-Based, or Income-Contingent Repayment Plans. The repayment period for these plans can be granted for up to 30 years.

Fixed Payment Amount

You may specify any payment amount greater than $5.00, provided that the payment amount is sufficient to cover the interest that accrues on your loan(s) monthly and pay off the remaining balance of your loan within 30 years. If the payment amount you request does not meet the aforementioned requirements, your payment amount will be set at the lowest possible payment amount that will cover the accruing interest and allow you to pay off the balance of your loan(s) with in 30 years. Your payment amount may be periodically adjusted to account for changes in your interest rate(s).

Fixed Repayment Term

This plan allows you to extend the term on your loan(s) in order to reduce your monthly payment.? Your requested repayment term cannot exceed 30 years on this plan. Your monthly payment amount must be sufficient to cover interest on your loan and cannot be less than $5.00. If the term you requested would result in a payment amount lower than $5.00, your term may be adjusted to meet the minimum payment amount requirement.

Alternative Repayment Graduated

Your initial payment amount on this repayment plan will be set using the greatest of $5.00, the amount of monthly accrued interest, or 50% of the payment that would be required under the Standard Repayment Plan. The payment amount will increase every 2 years for a term of up to 30 years.

Negative Amortization

Under this plan, you may make payments that are less than the calculated monthly interest on your loan(s) for a period of one year as long as the monthly payment amount is at least $5.00. At the end of the one-year period, your payment amount will increase to a level that will satisfy the amount of interest that accrues monthly and will allow you to pay the balance of your loan(s) within a maximum of 30 years.

To apply for an Alternative Repayment Plan:

  1. Download the request form.
  2. Sign the form and return it to:
    Nelnet
    P.O. Box 82565
    Lincoln, NE 68501-2565
    Fax: 1.866.545.9196

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