What student loan repayment plans are available?

In North Carolina, there are several different plans available for student loan repayment. The Standard Repayment Plan is the most common repayment plan, and it allows borrowers to pay off their loans over a span of 10 years. Under this plan, monthly payments remain the same and interest rates are fixed until the loan is paid off in full. The Graduated Repayment Plan allows borrowers to make lower initial payments that increase over time. Payments are usually set to increase once every two years, and the plan does not extend beyond ten years. The Extended Repayment Plan allows borrowers to extend their repayment periods up to 25 years. Monthly payments are lower than the Standard and Graduated Repayment Plans, however, interest rates can be either fixed or variable. Income-based Repayment Plans base monthly loan payments as a percentage of the borrower’s income. The exact percentage varies, but typically ranges from 10-20%. This plan is beneficial for those with lower incomes and can help borrowers pay off their loans in 15 years. In addition to the above plans, borrowers can also consolidate their loans or apply for deferment or forbearance if they need more time to make payments. It’s important to speak with a loan counselor or financial advisor before making a decision about which repayment plan is best. They will be able to help borrowers understand the different options and make an informed decision based on their individual financial situation.

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What student loan repayment plans are available?

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