What are the different types of student loan repayment plans?

In Washington, there are several different types of student loan repayment plans to help borrowers manage their debt. The Standard Repayment Plan is the most common type of plan and allows borrowers to pay back their loan in 10 years or less. The monthly payment is calculated based on the loan amount, interest rate and loan type. This plan usually offers the lowest total cost over the life of the loan. The Extended Repayment Plan takes longer than 10 years and allows for a lower monthly payment. This plan is available to borrowers with more than $30,000 in student loan debt. The Graduated Repayment Plan is for those who expect their income to increase over time. With this plan, payments start off lower and increase every two years. This plan typically takes longer than 10 years to pay off the loan. The Income-Based Repayment Plan is designed for borrowers who have a limited income and/or significant student loan debt. Payments are based on a percentage of the borrower’s discretionary income and are recalculated each year. The loan can be paid off in either 20 or 25 years, depending on the type of loans. The Pay As You Earn (PAYE) Plan allows borrowers to pay a fixed payment of 10% of their discretionary income for up to 20 years. The Income-Contingent Repayment (ICR) Plan is for those with direct loans and is based on the borrower’s annual income and loan amount. The loan is typically paid off in 25 years. These are just some of the options for student loan repayment plans available in Washington. It is important to contact your loan servicer to discuss your repayment options and find the best option for your individual situation.

What are the different types of student loan repayment plans?

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