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PAYMENT OPTIONS FOR STUDENT LOANS
There are a number of student loan payment options available to you. The standard
repayment plan for student loans amortizes the loan over a period of ten years. This
allows you a level payment which can be easily budgeted. Right. Unless your student
loan payments are five hundred a month and your income is less than enough to cover it.
When that happens …
Stafford student loan lenders and Direct loans as well have graduated payment plans.
These are stepped payment plans, where you pay less in the beginning and gradually
build up so that you can repay the full amount in ten years. Frequently, these graduated
plans have you paying less than the interest in the early years, and making up for it later.
If you expect your income to increase steadily each year, this may be an excellent option
for you. Be advised that if you are making less than a fully amortized payment, you may be using forbearance time.
Stafford loan lenders also have income sensitive repayment plans. The payment is re-cast each year, based upon income information you provide to the lender. The payment may be as low as 4% of your income or as high as 25%. Once again, you may be using forbearance
time to take advantage of this option.
Direct student loans qualify for the income-contingent option. Under this option, you qualify for an income sensitive payment which is re-cast each year. You make your payments regularly
for twenty-five years and if you still haven’t paid the loan off, the balance can be forgiven.
This is only a quick overview of the payment options available. Congress has set a minimum payment of $50 per month for your combined student loans. For more detailed information, read “Surviving Your Student Loans”.
Payment Options For Student Loans:
Student Loan Topics:
Master Promissory Note, Student Loan Deferment, Student Loan Forbearance, Student Loan Consolidation, Student Loan Discharge, Student Loan Grace Period, Subsidized
Student Loans, Unsubsidized Student Loans, Stafford Student
Loans, Perkins Student Loans, Direct Student Loans, PLUS
Student Loans, William G. Ford Student Loans, Student
Loan Delinquency, Student Loan Default, Student Loan Payment
Options, Student Loan Case Studies, Student Loan Management,Additional Reading Relating To Student Loans, How Do I Get A
Student Loan, How Do I Confirm the Status of my Student Loans, Why
Do I Owe Twice As Much As I Borrowed On My Student Loans, Pending
Changes Affecting Student Loans, Bankruptcy and Student Loans, Student Loans And Your Credit Report, Student Loans, Gifts.
