|
People looking for federal student loan help are often seeking lower monthly payments. With student debt figures topping credit card debt, it is no wonder there are so many households needing assistance. Just like any other debt, it is important to stay current on payments while covering all other living costs. Some people tend to avoid college debt when instead - they could take advantage of federal student loan repayment plans. Standard Repayment Plan This plan carries less interest than other plans; the minimum possible payment is $50 per month up to 10 years. All Direct Loans and Federal Stafford Loans are eligible along with PLUS loans. Graduated Repayment Plan In this plan, the payments start out low then gradually increase every two years for up to 10 years. The overall cost is more expensive than the Standard Plan and covers the same loans. Extended Repayment Plan An extended plan offers more time to repay the loan, up to 25 years. It covers the same loans as the two above, but the benefits will vary according to which loans are in your portfolio. Payments are lower than the Standard Plan because of the extra time added to the term of your loan. The plan will cost more over the length of the loan as compared to the Standard Plan. Check with a student loan debt help services to find out more about this plan and the eligibility of your type of student loan debt. Income-Based Repayment Plan (IBR) This plan covers the same loans as the above plans including Direct or FFEL consolidated loans which were not made to parents. Your monthly payments are calculated based on 15% of applicant's discretionary income and 150% of the state of residence poverty guidelines for their family size. This payment is recalculated each year so as income increases, so will the monthly payments. There must be signs of financial hardship. After 25 years of payments, the outstanding balance will be forgiven. The overall price of the plan is typically higher than the Standard Plan and there may be tax charges for the amount forgiven. Pay As You Earn Repayment Plan This plan covers all Direct and Federal Stafford Loans including all PLUS loans made to students (not their parents) and consolidated loans which do not include parental loans. The maximum monthly payment will be only 10% of the discretionary income. Payments change as income changes for a loan term of up to 20 years. This is the newest repayment plan offered by the Department of Education. New borrowers, or those who borrowed after Oct. 1, 2001 and took out disbursements on or after Oct. 1, 2011, must have partial financial hardship. Payments are lower than the Standard Plan, can be forgiven after 20 years of payments and as with the IBR, there may be a tax charge for the forgiven amount. Income-Contingent Repayment Plan This program will work with all Direct Loans, PLUS loans made to students and Direct Consolidation Loans. The payments are calculated based on the amount of the loans entered, your income and family size. Payments will change as income changes for a loan term of up to 25 years. After 25 years of payments the remaining loan balance will be forgiven and subject to possible taxes. Income- Sensitive Repayment Plan This plan will cover all Federal Stafford Loans, FFEL PLUS Loans and FFEL Consolidations Loans. The monthly payment will depend on income and will vary as income varies for up to 10 years. Another varying factor is that the lender will determine your monthly payment according to their calculation formula. As you can see, the qualifying process for obtaining student loan payment help by repayment plans can be quite confusing and require extensive time to sort through the complexities. Check with an expert to get your applicable loans enrolled in a plan which will fit your budget and future finances. National Student Loan Relief helps individuals gain financial relief from their Federal Student Loans. Lower your student loan payment and get a reduced interest rates.
Related Articles -
student loan, student loan consolidation, student loan debt relief, teacher loan forgiveness,
| 
