What are the different types of student loan repayment plans?

In Virginia, there are several different types of student loan repayment plans available. The Standard Repayment Plan is the most common type of repayment plan for federal student loans. It requires fixed monthly payments over a 10-year period. For borrowers with multiple loans, these payments may be combined into a single monthly payment. The Graduated Repayment Plan also sets payments for a 10-year period, but the amount of each payment increases every two years. This is beneficial for borrowers who anticipate having a higher income in the future. The Extended Repayment Plan allows borrowers to make payments over a 25-year period. This plan offers lower payments than the Standard Repayment Plan, but comes with higher overall interest costs for the loan. The Revised Pay As You Earn Repayment Plan (REPAYE) is available to borrowers with direct student loans. It offers payments for up to 20 years and provides partial debt forgiveness after the loan is paid in full. The Income-Based Repayment Plan (IBR) allows borrowers to make affordable monthly payments based on their income. As long as the payments are made on time, any remaining debt after 25 years will be forgiven. The Income-Contingent Repayment Plan (ICR) is available to all federal student loan borrowers. Payments are based on a borrower’s adjusted gross income, family size, and total amount of federal student loan debt. It also offers partial debt forgiveness after 25 years of repayment. Finally, the Pay As You Earn Repayment Plan (PAYE) is available for borrowers with direct federal loans. Payments are based on income and family size for 20 years. After 20 years, any remaining debt is forgiven. Each of these plans provides different options to borrowers who are struggling to make their loan payments. Borrowers should contact their loan servicer to discuss their available repayment options and understand which plan would work best for them.

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What are the different types of student loan repayment plans?

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