Definitions for "Graduated Repayment Plan"
A repayment plan in which the payment amount changes periodically, usually increasing at scheduled intervals during the course of the repayment period.
A graduated repayment plan is a means of paying off debt that involves increasing payments over time. In theory, a borrower increases his income in future years, increasing his ability to repay debt.
A repayment schedule under which the amount of the borrower's installment payment is scheduled to change (usually by increasing in two or more increments) during the course of the repayment period. The graduated Repayment Schedule cannot exceed 10 years, excluding in-school, grace, deferment, or forbearance periods.