Student Loan Payment
Do you ever know you may saving and reduce interest through student loan payment? There are many repayment programs and options exist to relief the financial burden of students.
There are several types of repayment plan commonly use by student :-
1) Standard repayment plan - This option is to fixed your repayment term into 10 years, monthly payments are fixed and remain the same for life of the loan. It is suitable for those who have steady income and capable to pay the monthly payment.
2) Graduated repayment plan - Allow smaller amount for the 1st 2 years, and it will increasing every 2 years. The monthly payment amount will equal or slightly more than the interest amount. All interest will accrue over life of the loan. Suitable for peoples who expects to have steady wage increases.
3) Income sensitive repayment plan - similar with graduated plan, low in the beginning and will increases if your income increase. However it's ties to borrower's income to a percentage of the borrower's monthly income.
4) Extended repayment plan - with this plan, borrower allow to pay least for monthly payment, the term from 10 to 25 years. Due to the payment term prolonged, borrower may pay much for the interest.
Due to some circumstances, some student unable to repay the loan, such jobless, injured (unable to work), or other reasonable reasons are entitle for the deferment or forbearance.
1) Deferment - postpone your scheduled student loan payments for various reasons, such as unemployment, economic hardship, and student enrollment. Qualification is determine by lender or service agent, if you meet the requirements.
2) Forbearance - reduction of payments, extension of time and temporary cessation of payments. The main purpose of this option is to help borrower to prevent of payment default.
For more student loan information, please check out Student Loans Guide instead of Student Loan Payment
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