How to Figure Out Your Student Loan Repayment Plan
Read this article if you’re unsure which student loan repayment plan you’re in. Estimated read time ~3 minutes.
Figuring out your current repayment plan is quick and easy. It’s the first step you need to take to decide if you’re in the smartest repayment plan for your financial situation. Read on to figure out which repayment plan you’re in and to find the key pieces of information you’ll need to decide if it’s the right plan for you.
Contact Your Loan Servicer
Your loan servicer can tell you which repayment plan you’re in. If you don’t know who your loan servicer is you can find that out by logging in to your Federal Student Aid account.
Key Information About Your Repayment Plan
- Duration of repayment. How long will it take you to repay your loans according to this plan with no missed or extra payments?
- Eligibility for loan forgiveness. Are payments made under this repayment plan eligible for loan forgiveness?
- Monthly payment compared to income. Is your repayment plan a fixed monthly amount or does it vary depending on your income?
- Advantages and disadvantages. What are the advantages and disadvantages of this plan? For example, some plans minimize the amount you pay in interest and help you repay your loans more quickly but have high monthly payments. Others have low monthly payments but stretch out the time it takes to repay your loans which means you pay more interest.
- The target borrower. Who is the ideal candidate for your repayment plan? It’s helpful to compare your financial situation and decide if the plan makes sense for you.
Now that you know which repayment plan you’re in, do you think it’s the right plan? I’m happy to help navigate plan differences and answer any questions you have. Leave a comment below or post your thoughts on the Repayable Facebook page.
Additional Resources
https://studentaid.ed.gov/sa/repay-loans/understand/plans
https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven
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