There are several payment types available for student loans, depending on the type of loan and the repayment plan that you choose. Here are some of the most common payment types:
- Standard repayment: With a standard repayment plan, you’ll make fixed monthly payments over a period of 10 years. This is the default repayment plan for most federal student loans.
- Graduated repayment: With a graduated repayment plan, your monthly payments start out lower and then gradually increase over a period of 10 years. This can be a good option for borrowers who expect their income to increase over time.
- Extended repayment: With an extended repayment plan, you’ll have up to 25 years to repay your loans, and you can choose between fixed or graduated payments. This can be a good option for borrowers who need lower monthly payments.
- Income-driven repayment: Income-driven repayment plans adjust your monthly payments based on your income and family size. There are several types of income-driven repayment plans, including Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR).
- Income-sensitive repayment: This is a repayment plan offered by some lenders for certain types of loans, and it adjusts your monthly payments based on your income.
It’s important to note that not all repayment plans are available for all types of loans, and there may be eligibility requirements for certain plans. Be sure to research all of your options and choose the repayment plan that works best for your financial situation.
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