Here we let you know about some common ways of repaying a student loan but of course, the more you pay and the less time you take on repaying, will release you sooner and even save some money while doing it.
The standard 10-year plan: It means just paying your minimum payment every month as planned. Taking the regular time and interests, you knew from the beginning.
Extended repayment: it can take up to 25 years, it might seem more affordable, but extending your loan for a longer time also increases interests by a lot.
Income-based repayment: this plan can take up to 30 years to be paid for, and is totally based on how much you make a month when you already graduated and are earning out of the academic career you finished.
- Deferment: this option consists in having your loan put on hold for some time, usually up to 3 years, in specific situations like unemployment, disability or military service and it will not add interest in the meantime.
- Student loan forgiveness: yes, it’s a real thing, some public employees are lucky to have their student loans forgiven or at least a percentage of it.
Each plan is adapted to the needs of those who request it. Always think about how to pay less, but make this decision consistent with your possibilities. There are many situations that could change the future, so you should try to be as thorough as possible.
Likewise, don’t be scared, there is always a solution for everything, just a matter of thinking a little.