What are the different repayment options for student loans?

In California, there are several different repayment options for student loans. The standard repayment option requires borrowers to make fixed payments of at least $50 each month over a period of 10 years. For borrowers who have more debt than they can handle on a standard repayment plan, there are income-driven repayment plans. These plans usually reduce the monthly payments to an amount that is based on a certain percentage of the borrower’s income. Income-driven plans also extend the repayment period, typically up to 25 years. California also has an extended repayment plan, which allows borrowers to stretch their repayment period out to 25 years. The monthly payments are lower than those on the standard plan, but total costs over the life of the loan tend to be higher. The graduated repayment plan also reduces the payments in the beginning of the repayment period and gradually increases the payments over a period of 10 years. Finally, some borrowers may qualify for loan forgiveness. This means that after a certain number of payments are made, the remaining balance is erased. To qualify for loan forgiveness, borrowers must meet certain criteria, such as working in a designated public service job or having their loan discharged due to disability. No matter what repayment option borrowers decide to pursue, it is important to keep in mind the cost of repaying the loan and the terms of the loan. It is also important to keep up with the payments and take advantage of any state or federal programs that may help pay off the loans.

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What are the different repayment options for student loans?

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