Repayment Plans, Repayment Options

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Paying for College

Federal Student Loans

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Creating a Budget

Consolidation Loans

Federal Student Loan Consolidation

Private Student Loan Consolidation

Repayment Options

Determine your Repayment Plan
When you enter into your student loan repayment, you will have to choose a payment option. These options include:

Standard Repayment Plan
Pay a fixed amount each month until student loans are paid. This allows you to set a budget with fixed payments. Generally, your servicer will select this plan for you if you don't select a repayment plan.
Extended Repayment Plan
For borrowers with more than $30,000 in total debt, repayment term may be as long as 25 years. You will make smaller monthly payments on your student loans.
Graduated Repayment Plans
With a graduated plan, the scheduled monthly payment is lower in the first year or two and then increases in subsequent years. This plan is tailored to persons embarking on new careers who expect their incomes to increase during the term of the loan. The total of payments under graduated payment plans is greater than those under level payment plans, because more student loan interest accumulates in the early years of the plan when the outstanding loan balance is higher.
Income Sensitive Repayment Plan
Repayment of your federal student loans are tied to your income, calculated on the basis of your Adjusted Gross Income, family size and total borrowed. Payments must at least cover monthly accrued interest.

Remember: The longer you take to repay your federal student loans, the more you will pay. You may change your repayment plan once a year. Make sure you know and understand your options, including Deferment, Forbearance, and Forgiveness.

You can also take advantage of The Federal Student Loan Consolidation Program, which allows students to consolidate one or more eligible federal student loans into a new, single loan for free. While combining all debt into a single monthly payment, students can extend the repayment period up to 30 years.