There are several student loan repayment plans that are available for students seeking financial assistance to pay for their education. Each of the listed plans below have low monthly payments. the following are some of the repayment plans that are suitable for students.
Standard Repayment Plan- This plan is comprised of the payment of a fixed monthly amount for the loan term up to a maximum of ten years. Depending on the amount of money borrowed the loan term may be shorter than ten years. This will involve a monthly minimum fee of $ 50.00. This is a very flexible way of paying back the loan over time without feeling the strain.
Extended Repayment Plan- Under this plan the there is also a fixed monthly amount that the student will be required to pay but for over a period of 12-30 years. This plan helps with spreading out the payments over a long time and also reduces the size of the payment made each time. This plan will however increase the total amount to be repaid by the student.
Graduated Repayment Plan- This repayment plan starts off with lower payments and increases every two years. If the loan term is 12-30 years then depending on the amount or the money borrowed the monthly payment should not be less than 50 % and not more that 150% of the monthly payment.
Income Contingent Repayment Plan- Under this plan the repayment amount is based on the borrowers income and the total amount of the money borrowed. The monthly payments will be adjusted every year depending on the changes of the borrowers income. Under this plan the repayment term is up to 25 years. After the 25 years any balance remaining that is unpaid will be disregarded and is taxable under the current law. This plan only caters for the direct loan borrowers.
The Income Sensitive Repayment Plan- This plan is also another alternative that will attach the monthly payments to a certain percentage of the monthly gross income and the acceptable loan term is ten years.
The Income Based Repayment Plan- This is a plan that was introduced by the College Cost Reduction and Access Act of 2007. It was a more generous plan than the rest that have been mentioned above. This plan is also available to all students. With the above mentioned student loan repayment plans one should be able to select on that will suit their needs and help them study without feeling the strain of looking for school fees.