Some Alternative Ways to Pay off Your Stafford Loans | 05.25.10

Posted in PLUS Loans, Stafford Loan By Student Loan Network Staff

If you are a recent graduate, once your grace period comes to a close, you will be tasked with repaying your federal student loans. While many people opt for standard repayment, there are actually alternative means as well -  if you are eligible.

Graduated repayment- Graduated repayment allows you to make lower payments at the beginning of repayment with the payments gradually increasing over time. Payments are generally put toward interest only in the first few years. Eligibility for a graduated repayment plan varies depending on loan type, interest rate, and outstanding balance.

Income-based repayment - Monthly payments are based on a percentage of your monthly gross income. Typically you can be eligible for income-based repayment if your monthly payments are greater than 10% of your gross income.  Find out if income-based repayment is right for you.

Extended Repayment - Extended Repayment provides eligible Federal Stafford and PLUS borrowers with payment relief through a lengthened repayment term of up to 25 years. To be eligible, you must have a total outstanding balance of eligible student loans that exceeds $30,000.

Have more questions about Stafford loan repayment? Fire away in our Financial Aid forums.

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2 Responses to “Some Alternative Ways to Pay off Your Stafford Loans”

  1. c. hammett says on August 4, 2010 at 11:11 pm:

    Are there provisions for any type forgiveness if going into Peace Corps?

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  2. Tab Fernandez says on June 9, 2010 at 11:41 am:

    With the change that takes effect 1 July 2010, where your student bank loans will be under the federal government, to what address do I send my payment, and does the interest rate in your bank loan reverts automatically to the federal 4.5%?

    Reply To This Comment

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