What are my repayment options?

Repayment options for student loans in Pennsylvania vary depending on the type of loan you have. Federal student loans have several repayment plan options, including the Standard Repayment Plan, Graduated Repayment Plan, Income-Contingent Repayment Plan, Income-Sensitive Repayment Plan, and Extended Repayment Plan. With the Standard Plan, borrowers make fixed monthly payments over a period of 10 years. The Graduated Plan allows for lower payments at the beginning of the loan, which gradually increase every two years over a period of 10 years. The Income-Contingent Plan allows for payments based on income and family size, with the repayment period ranging from 20 to 25 years. The Income-Sensitive Plan allows for payments adjusted annually based on income, and the Extended Plan allows for payments to be spread over 25 years. Borrowers of private student loans can also select from a variety of repayment plans. Most lenders allow borrowers the choice of a fixed or variable rate repayment plan. Generally, the fixed rate plan has a higher rate but the payments remain the same throughout the loan repayment period. Variable rate plans, on the other hand, have lower initial rates but can increase over the life of the loan. Borrowers can also choose to pay interest-only payments for a period of time, or opt for a deferred payment plan if they are going through a period of financial hardship. Many private lenders also offer extended loan terms, which can help lower the monthly payments.

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What are my repayment options?

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