Student Loan Repayment Options
If you’ve graduated recently, or are in your final semesters, it may be time for you to start thinking about student loan repayment. One of the most basic things to remember for those who have borrowed money through the Federal Stafford Student Loan program is that you have options for the way in which your repayment takes place. Student loans are typically set up on a ten-year repayment program, with a set minimum payment due every month. However, you may also qualify for a graduated or income-sensitive repayment plan. A graduated plan starts with relatively small minimum payment which is scheduled to increase over time. Income-sensitive payment plans adjust the minimum payment based on how much money you are making at the time. These options are written in to the federal regulations that govern Stafford loan repayment, and can be great for graduates who are unsure about how much money they will be making as they begin their careers. If you choose to take out a consolidation loan, your options may change. So be sure to speak with your school’s financial aid advisor and a representative of your lender bank before deciding how to go forward with your loan repayment.
Categories: Student Loans