Student Payment Plans.

Please keep in mind, repayment of loans must begin six months after graduation, or after dropping below half time enrollment status.1. The Standard Payment plan, is a repayment plan where the money borrowed is paid back at a rate of no less than fifty dollars a month for a period of ten years.2. The Graduated Payment plan, is a repayment plan where the money borrowed is paid back starring with low payments that increase over time for a period of ten years. 3. The Extended Payment plan is for student that owe in excess of thirty thousand dollars, and has various available payment structures.   One of the best ways to repay a student loan, is by using income driven repayment plans. These plans are designed to conform to what is going on in your life financially. Such plans are based on over all income, and take into true consideration your family obligations. Size of family is quite relevant, the same as it is when doing one’s income tax returns. Also after two hundred and forty months, debt forgiveness programs become available to the borrower. Types of income driven plans are in the next paragraph.   Income Based Repayment is a type of payment plan that is designed to assist FFELP borrowers as well as some types of direct loan borrowers. This payment plan takes into consideration the borrowers income, number of people in the family, as well as considering the over all balance of the debt. These factors are then used to insure that the borrower is not required to pay more than fifteen percent of their monthly discretionary income.   The Pay As You Earn payment plan is a plan that is offered to direct loan borrowers which uses the income, size of family, and total balance of debt as factors to create a plan aimed at ten percent of the monthly discretionary income. The great thing about this plan, if the borrower succeeds with it, after twenty years, the balance is forgiven.   The Income Contingent Repayment plan is only available to those who have Federal Student Loans. This plan is adjusted annually based on tax return data, and if there is a balance owed after twenty five years of payments, the balance is forgiven.   The Income Sensitive Repayment plan is for Federal Family Education Loans only. This payment plan adjusts annually based on total annual income. The term of the plan is ten years in duration.     As i have said in other posts, never rely on a website or blog post when making decisions regarding financial matters. Do all of your necessary diligence, and get with a loan officer as well as taking the time to talk to someone at a department of education office specializing in financial aid. Website are great reference points, but that is all a website is. Take great care when making such decisions for your self and your family, it is well worth the effort.