![]() With this affordable way to repay a Federal student loan, monthly payments are capped at an amount based on your family's size and income. Income-based Federal student loan repayment (IBR) Federal student loan repayment is accomplished in a period of up to ten years. However, your payments are then ratcheted up every two years, during which time your income will presumably be increasing. With this structure payments are lower at first, covering at least the interest that accrues between payments. Graduated Federal student loan repayment plan The fixed monthly payment is lower than under the standard plan, but the total that is repaid is higher, because interest accumulates for a longer time. Offering a fixed, annual, or graduated repayment amount, the student loan repayment period on this plan doesn't exceed 25 years. Monthly payments must be at least $50.Įxtended Federal student loan repayment plan Under this plan you are required to pay a fixed amount each month until the loans are paid in full, with up to ten years to repay. ![]() Standard Federal student loan repayment plan Learn more about the Federal student loans repayment plans you can choose from with Direct Stafford Loans below. However, for unsubsidized Federal student loans, interest will begin accruing on the loan while you are still enrolled in school. You won't be required to begin repaying your Federal student loan until six months after you either graduate or drop below half-time student status. ![]() Take the time to understand the steps necessary to repay federal student loansĪmong the many attractions of a Federal student loan is the flexibility it offers in repayment terms. If you still have questions, call an Education Finance Specialist at 1-88, and we'll help walk you through the process. Visit our student services page to learn more about repayment options on our Citizens Student Loan. Having access to the right student loan repayment information helps you make the right choice for your familyĬitizens helps you make wise choices by providing student loan repayment information. Failure to pay in a timely manner can lead to credit problems, student loan forbearance or even loan default. Remember, as the borrower, you are responsible for knowing when your payments are due, regardless of whether or not you've been reminded. Lenders will most likely notify you before repayment should begin and you'll usually have a period of time between 10 and 25 years to pay off your private student loan. It's important to closely read and understand the language in your loan's promissory note, since it governs terms and conditions of private student loan repayment. Payment of principal and interest begins as soon as the loan is disbursed. You pay only the accrued interest while you are in school. Payment begins 6 months after graduation. No principal or interest is due while you are still enrolled at least half-time. The following are three standard options most lenders offer to repay private student loans: With our Citizens Student Loan you can choose between three different repayment options, with the ability to prepay on your loan without triggering full repayment or a prepayment penalty. Most lenders offer a number of repayment options. ![]() “ Student Loan Repayment: When You Must Begin Payments.The more you know about your private student loan's repayment, the more you'll save “ Options for Repaying Your Private Education Loan.”įederal Student Aid. “ What Are Private Student Loans?”Ĭonsumer Financial Protection Bureau. “ If Your Federal Student Loan Payments Are High Compared to Your Income, You May Want to Repay Your Loans Under an Income-Driven Repayment Plan.”Ĭonsumer Financial Protection Bureau. “ Federal Student Loan Portfolio,” download Excel “Portfolio by Repayment Plan (DL, ED-Held FFEL, ED-Owned).”įederal Student Aid. “ FACT SHEET: President Biden Announces New Actions to Provide Debt Relief and Support for Student Loan Borrowers.”įederal Student Aid. “ COVID-19 Emergency Relief and Federal Student Aid.” ![]() “ FACT SHEET: The Biden-Harris Administration Launches the SAVE Plan, the Most Affordable Student Loan Repayment Plan Ever to Lower Monthly Payments for Millions of Borrowers.”įederal Student Aid. “ Public Service Loan Forgiveness Data,” download Excel “June 2023.”įederal Student Aid. “ Public Service Loan Forgiveness (PSLF).”įederal Student Aid. ![]()
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