What are the different types of student loan repayment plans?

There are several types of student loan repayment plans available in North Carolina to help borrowers manage their debt load. The most common type of repayment plan is the Standard Repayment Plan, which requires payments for a period of up to 10 years. This plan typically allows borrowers to pay off their loans in the shortest amount of time and at the lowest cost. Another popular option is the Graduated Repayment Plan. This plan allows for lower payments at the start of the repayment period but gradually increases over time, usually up to 10 years. This option is beneficial to borrowers who anticipate having a higher income later in life and need some time to get there. The Extended Repayment Plan is available to borrowers who have more than $30,000 in Direct or Federal Family Education Loans. The Extended Repayment Plan allows borrowers to stretch out their payments over a period of up to 25 years and is best suited for borrowers with higher debt amounts. Income-Driven Repayment Plans are also available for borrowers who have difficulty making their payments. These plans can reduce payments based on a borrower’s income and family size. These plans offer borrowers flexibility and can extend repayment up to 20 or 25 years. Finally, borrowers can also explore loan consolidation, which allows them to combine multiple federal loans into a single loan with a single monthly payment. Loan consolidation can also help borrowers extend their repayment period, reduce interest rates, and waive certain fees.

What are the different types of student loan repayment plans?

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