What are the different types of student loan repayment plans?

In Wisconsin, there are several types of student loan repayment plans available to borrowers. The standard repayment plan is the most widely used and it requires a fixed monthly payment over a 10-year period. Borrowers on the standard repayment plan have the lowest overall interest cost. The Income-Driven Repayment Plan (IDR) allows borrowers to make monthly payments based on their income. This plan extends the repayment period to 20 or 25 years, depending on whether the loan was used to finance undergraduate or graduate studies. The Graduated Repayment Plan increases payments over time, but the total repayment period is still 10 years. This plan is designed for borrowers with smaller initial incomes and gives them some flexibility in the beginning. The Extended Repayment Plan is for borrowers with more than $30,000 in federal student loan debt. This plan extends the repayment period to 25 years, and can lower monthly payments significantly. Finally, the Pay As You Earn Repayment Plan (PAYE) is for borrowers with high student loan debt relative to their income. It also extends the repayment period to 20 years, and potential loan forgiveness is available after the borrower makes payments for 20 or 25 years. In conclusion, Wisconsin student loan borrowers have several options when it comes to repayment plans. Each plan has different benefits and drawbacks, so it is important to review each option carefully and choose the plan that best fits their financial needs.

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What are the different types of student loan repayment plans?

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