However, you should realize that extended payments mean that you will be paying a greater amount of interest over the term of the loan. Each of these plans offers a different solution. You make equal monthly payments during the entire term of the loan. You can save money just by consolidating your eligible loans into one payment. By selecting this plan, you will reduce total interest over the term of the loan.
Payments then increase in year three to include both interest and principal.
Interest-only payments are made for the first two years, followed by three years of slightly higher payments which include interest plus a portion of principal. Regular principal and interest payments then begin in year six. Income Sensitive Repayment Network Consolidation is proud to announce the addition of income sensitive repayment to the list of repayment options offered by the consolidation program. There is no penalty for prepayment, no matter which plan you select. The longer you take to repay a loan, the more you will pay in interest charges over the life of that loan.