Student Loan Repayment Advice
There are several ways of student loan repayment in the loan market. Choose the right program will enable you to saving money and reduce interest rate significantly.
Below are the few schedule commonly use by students for loan repayment.
1) Standard Repayment - general repayment method for Federal Stafford Loan and Federal Plus Loan.Based on 10 years repayment period, interest set and schedule for 10 years. Minimum payment is $50.00 per month. Most peoples are preferable this method, but the term will take a little longer.
2) Graduated Repayment - this method is lower payment at beginning, it will increasing every 2 years. Suitable for fresh graduate with low income at the beginning. But will pay more interest over life of the loan. The plan is permitted to change once a year.
3) Income Sensitive Repayment - is based on your income, it will rise up or drop down, all ties to borrower's income. It is more flexible and manageable, but borrower will pay more over the life of the loan. And it also permitted to change the plan once a year.
Borrower may take the benefits from method 2 & 3 stated above at the beginning. Paying less at the early stage, but when borrower is capable to repay much money are advice to repay much for monthly payments. Because paying much will not only shorten payment term but to reduce overall interest and build a good credit history.
For more student loan information, please check out Student Loans Guide instead of Student Loan Repayment Guide
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