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

• Standard repayment

  This option requires you to pay a fixed amount each month based on your principle and interest but will be no less than $50 or the interest that has accrued.

• Graduated repayment

  Graduated repayment allows you to make lower payments at the beginning of repayment then, over time, your payments begin to increase. Each of your payments must equal the interest accrued on the loan between scheduled payments and initial payments general cover interest only for the first few years.

• Income-based repayment

  Monthly loan payments are based on a percentage of the borrower's monthly gross income. StaffordLoan.com offers an income-sensitive repayment plan.

• 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.

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.

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.