Student Loan Repayment – Options You Can Use

August 30, 2011

Student Loan Repayment

There are many student loan repayment can be options that you can consider that can cater best to your situation. Whether you are looking to pay your loan off faster, or slower or anywhere in between there can be a method that suits you best when payment times comes, which is usually 6 to 9 months after the conclusion of your schooling. To get your familiar with student loan repayment, the different options will be listed below and if you happen to be looking to be looking for ways to pay it off faster, we’ve got you covered there too as there will be 4 different ways in which you can use to pay your loan off faster than ever.

Student Loan Repayment

Student Loan Repayment – Repayment Options

Here are 6 of the most used student loan repayment problems that people are using today.

  1. Standard Student Loan Repayment – The repyament time for this option is what all the loans are set at through the lender you went through to get your loan when you first signed your contract. This plan is usually on the short end, probably 10 years and is good if you want to pay you loan off quick, but it will yeild the highest payment plan. It is good to know that this repayment plan can be switched in the beginning, usually the first 1-6 months of loan payments. Monthly payments can be as low as 50 dollars.
  2. Extended Student Loan Repayment – These can be either negotiated with your lender or done through a consolidator. When you extend you student loan repayment period, you are taking your repayemnt timeframe and making it from usually what is 10 years with most programs to 12 to 30 years as well as at least 50 dollars is demanded for monthly payments.
  3. Graduated Student Loan Repayment Plan – This plan is one where your loan payment starts out low and increases after a certain amount of time, usually being every two years it will increase. This is a great way to pay low payments when you get your first job, and be able to establish yourself and pay more later when you are earning more. This student loan repayement option usually offers payment plans that range from 12 to 30 years as well.
  4. Income Sensitive Student Loan Repayment – This option is fully based off what you earn. You monthly payments will be adjusted to a rate at which you can afford.
  5. Income Contigent Student Loan Repayment – This is similiart to the Income Sensitive repayment plan, but this one will have monthly payment increases as your income increases.T hese payments have been as low as 5 dollars per month for some people and is based off 15 percent of your income. For loans above 50,000 dollars, after you pay 25 years of payments at 15 percent of your income, the rest of your loan will be forgiven. This student loan repayment option is the best for those who went into law school, schooling for doctors and any other schooling where loans were very high.
  6. Student Loan Forgiveness – These programs are where you work a public service job, community service or a job in a low income area or similiar, and these programs either offer you a large chuck of money for each year of service, also they can pay a percentage of your loan each year of service, or you work a low income job and make 120 straight on time payments, and after the conclusion of the 120 payments, whatever is left your loan is wiped clean.

These are methods of student loan repayement where you are paying your loan bills, other ways in which do not involve paying are forbearance, student loan default, economic hardship, student loan bankruptcy among others.

Student Loan Repayment – What To Do Now

Now that you know the differet options when it comes to student loan repayment, and you want to use one of these repayemnt methods, the first thing you should do now is to make a budget or your expenses which will give you a better idea of what student loan repayment plan would best fit your situation. After you do this, inquire through your lender or lenders about changing your student loan repayment method.

 

 

Category: Student Loan Repayment

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