Student loans can be be a life saver for many individuals, but when the time comes to repay them, many students are not aware of where to start or which steps to take. When an individual is ready to begin repaying the funds that they have borrowed, consolidating the student loan may be best. When this type of loan is consolidated, there will be several repayment options that are available. There are three primary repayment options that most people benefit from. These three options include:

Standard repayment

With the standard repayment plan, an individual will repay their loan by paying equal payments each month until the loan has been paid off.

Graduated repayment

With the graduated repayment option an individual will have the option of repaying their loan with low initial payments, which will increase every two years.

Extended repayment

The extended repayment plan will enable individuals to reps their student loan over the course of 25 years. In order to qualify for this particular payment option, an individual will have to owe at least $30,000 in student loan debt.

Each of these repayment plans offers different benefits to individuals who have encountered debt with student loans.

There are two other repayment options that are available to several individuals. These particular repayment options include income contingent repayment and income-based repayment. Keep in mind that the previously stated repayment options are not available to be used with parent PLUS loans.

As far as income contingent repayment is concerned, this is a repayment plan that is based on several different factors and details. These factors and details include:

  • the size of your family
  • total balance of your direct loan
  • annual income

An individual who selects this plan will have the opportunity to repay their loan over a time frame of 25 years. When it comes to income-based repayment options for repaying the funds for a student loan, many of the procedures and options that are associated with this method of loan payment are similar to the income contingent repayment method guidelines. In order for a student to qualify for this type of repayment option, a person has to be experiencing extreme financial difficulties and hardships.

Student loan debt can become frustrating and overwhelming. A student may not know what to do in order to get back on track with their loans. The best thing to do is take everything one step at a time. Do not try to do everything within one day. When a student feels that they are ready to begin making the payments to start paying off their loans, there are a few goals that should be set. Set an amount each month that you can realistically pay and stick to it.

Find out how much you can save by consolidating your student debt:

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