Student Loan Repayment Options and Plans

Student loans are an investment in your future. Repayment of your student loans should be seriously considered prior to taking out debt. Typically, it will take students 10 to 20 years after graduation before they are able to repay their student loans in full.

Most student loan lenders offer a variety of repayment options. However, not all student loan repayment plans and options are the same. Federal student loan repayment options will vary significantly from Alternative student loan repayment plans. It is important you understand the differences.

Federal Student Loan Repayment Plans and Options

Federal student loans typically have very specific repayment plans that borrowers can take advantage of. Though we recommend that you check with your lender to see which repayment plan can be offered, the plans below are typically options that borrowers can receive.

Standard repayment

Principal and interest payments are due each month throughout the loan repayment term.

Graduated repayment

Payments are smaller at the beginning of repayment and step up at specified periods and in specified amounts over the term of the loan.

Extended Repayment

Extended Repayment provides eligible Federal Stafford, Federal PLUS and Alternative loan/Federal Consolidation loan borrowers with payment relief through a lengthened repayment term of up to 25 years.

Income Based Repayment

Income-Based Repayment (IBR) is a new payment option for federal student loans. It can help borrowers keep their loan payments affordable with payment caps based on their income and family size. For most eligible borrowers, IBR loan payments will be less than 10% of their income - and even smaller for borrowers with low earnings. Learn More

Alternative Student Loan Repayment

In most cases, alternative student loan lenders offer the same type of repayment options. These include full loan deferral, interest only repayment, or immediate interest and principle repayment.

Full Deferral: No principal or interest payments are due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months after graduation, or if enrollment drops below half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan) at the time of repayment.

Interest Only: Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of principal and interest will begin either 45 days after graduation or if enrollment drops below half time.

Immediate Repayment: Payment of principal and interest will begin immediately after the loan is fully disbursed.

Student Loan Repayment : Consolidation

Considering how to lower your monthly payment? Take a look at some of the rewards and incentives of student loan consolidation: Great options for Federal and Private Student Loan Consolidation. Consolidate your student loans into one lower payment. Apply Today!

Student Loan Repayment : Deferment and Forgiveness

Can't make a payment because you can't find a job, are going back to school, or some other reason, consider an additional deferment allowing you to put off payments for a specific period of time, after you finish consolidating. Student loan forgiveness is sometimes an option as well.

Free Non-Student Loan Debt Consultation

Do you have more debt outside of student loans? Please request a free debt consultation today. Consolidate your debt into one lower payment, avoid bankruptcy, and be debt free in as little as 12-48 months. Get Started Now!

Student Loan Repayment : Default Avoidance

It is crucial that you make your student loan payments on time. Defaulting on your student loan will negatively impact your credit making it difficult for you to get new loans going forward. Read our Default Avoidance section form more details.