Student Loan Repayment Options


As you prepare to graduate from
college or career school, it’s important to figure out your loan
repayment strategy. It might seem intimidating, but don’t
worry. This overview will help you understand
the basics. Here’s what you should consider. Consider whether it’s a good idea to
consolidate your student loans. Consolidation combines your loans into
one, so you’ll have just one monthly
payment. And it may lower your overall payment
amount each month. But there can be downsides. For example, consolidation could increase the
total amount of money you pay. Now, on to repayment plans.
Which one should you choose? Well, it depends on your goals. With a standard repayment plan, you pay
a fixed amount each month. This plan is designed to ensure you’ll
pay off your loan within 10 years and minimize
the interest you pay. With a graduated repayment plan,
you start with a lower monthly payment, then the payment amount
gradually increases every two years. This plan also ensures you’ll pay off
your loan within 10 years, but you’ll pay more interest than you would under
the standard plan. Then there are income-driven repayment plans. These plans base your monthly payments
on your income level, so they can go up or down
as your income changes. There’s the Revised Pay As You Earn Plan,
also known as REPAYE. The Pay As You Earn Plan, known as PAYE. And the Income-Contingent Repayment
Plan, or IBR. And the Income-Contingent Repayment Plan,
or ICR. If you’re in one of these plans, you have
to recertify to confirm your income every year, but it’s easy. You just confirm or update your income
and family size information so your loan servicer can recalculate your payment. These plans aren’t designed to be sure
that your loan is paid off within a specific time frame, but if you don’t within 20 or 25 years,
the remaining balance is forgiven. All of these repayment plans have
advantages and disadvantages, so visit StudentAid.gov/repay for details. Need help figuring out which repayment
plan is right for you? Use our repayment estimator. It will help you estimate
your payments under each plan. It’s a tool that gives you a good
estimate of how much your payments would be under each plan. You can find the repayment estimator
at StudentAid.gov/repayment-estimator. Just fill in a few details, and it
does the math for you. Finally, you need to know how to
make monthly loan payments. You send loan payments to a
loan servicer. They handle the billing and other
services on your loan on behalf of the
U.S. Department of Education. Your loan servicer will provide
instructions on how to make a payment. If you have any questions, make sure
to follow up with your servicer. Not sure who your loan servicer is? You can look them up and see your
federal student aid history. And here’s a little payment tip: Once you know where to send your
monthly payment, it’s smart to enroll in automatic debit, or auto-debit, with
your loan servicer. With auto-debit, your payment gets
taken from your bank account automatically each month. This way, you’ll know your payments
will be made on time. Plus, if you enroll, you get a .25%
interest rate deduction on your loan. And there you have it. If you follow
these steps, you’ll be well on your way to successful—and less stressful—repayment. As always, if you have questions or need
help, Federal Student Aid is here to help.

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3 Responses

  1. Deborah Smith says:

    To many videos

  2. Peter Griffin says:

    Or join the military bam school paid

  3. George Norman says:

    It nice knowing mobilespy.tech1 at gmailcom!

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