Repayment Options
Sometimes choosing the right repayment plan makes all the difference in your ability to pay your student loan payment. But your options don't end there.
1. Review Your Student Loan Repayment Options
Level Repayment Schedule - The monthly installment amount remains the same throughout repayment, although small changes in the monthly installment amount may occur for loans with a variable interest rate if the annual interest rate increases.
If this installment amount does not fit into your budget, call your lenders or servicer to get estimates for the following repayment alternatives:
Graduated Repayment Schedule - This repayment schedule is designed knowing that borrowers should make more money as they progress in their careers. Payments are initially lower and then increase later in the repayment schedule.
Income Sensitive Repayment - This is the most flexible plan, but it can be the most expensive in the long run, and you must reapply annually. The monthly payment amount will be established based on your gross monthly income and student loan debt.
You provide your lender/servicer with information about your total gross monthly income received from all sources. Your income information cannot be more than 90 days old. If married, do not include your spouse's income.
If the student loan repayment options above do not fit into your budget, contact your lender or servicer to see if you qualify for the 25 Year Extended Repayment Plan.
Once you've chosen the right repayment plan, sign up for direct debit -- the easiest way to make your student loan payments and never worry about late fees or postage stamps!
2. Change Your Due Date.
If you fall behind because your student loan is due the same week as the mortgage, car payment and other big bills, contact your lender or servicer to see if you can change the due date.
3. Consider Loan Consolidation.
- Lower your monthly payments
Consolidating can extend how long you have to pay off student loans, sometimes up to 30 years. This can really reduce your monthly payments, even by as much as 50% or more.
- Combine all your student loans
One company takes over all your loans so that you only have to deal with them and not lots of lenders. One bill, one monthly payment, easy...
Do some homework:
Once you have consolidated your student loans, you can only consolidate again if you have an eligible student loan that was not included in your previous consolidation, or you received a new eligible loan that was disbursed after your loan consolidation.
4. You may qualify for a deferment or forbearance.
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