So you’ve finally graduated from college.
And now it’s time to repay those loans you’re loaded up with.
You usually have four ways you can do that.
- First, the Standard Repayment. You have up to ten years to pay the loan back drop by drop. You’ll pay a fixed amount every month.
- Then there’s Extended Repayment. You pay a fixed amount for a longer amount of time, usually up to 25 years. You’ll pay more in interest, but with big loan amounts, it’s a good option.
- Another option is Graduated Repayment. When you’re starting out your paycheck is small. Hopefully it will get larger. Graduated repayment mirrors that, with smaller payments to start, and larger as the loan goes along.
- Finally, there’s Income-Based Repayment. Each year you can have your monthly payment adjusted based on what you’re actually earning—up or down.
Two things—you can switch plans if you need. Keep in mind not all plans are available with all loans so contact your lender.
Whatever you choose, you’ll at least have a path to being debt free.
Do us a favor please. Tell your friends about us so they can be smarter about their money too.