What are the different repayment options for student loans?

Student loans in South Carolina offer several repayment options for borrowers. Before selecting a repayment option, borrowers should compare the different plans to ensure they choose the one that best fits their situation. The Standard Repayment Plan is the most common option and it allows borrowers to pay off their loans in a 10-year period. Under this plan, borrowers make fixed payments each month that are determined by their total loan balance. The advantage of this plan is that it helps borrowers save money on interest over the course of their loan repayment. The Graduated Repayment Plan is another popular option that allows borrowers to make lower payments at the start of the repayment period. The payments are then adjusted every two years and become higher, eventually reaching the amount of the Standard Repayment Plan. This option is better for borrowers that expect to see an increase in their income over the 10-year repayment period. The Extended Repayment Plan is another option that allows borrowers to make fixed or graduated payments over a longer period of up to 25 years. This plan may reduce the borrower’s monthly payment but will increase the overall cost of the loan with added interest. The Income-Based Repayment Plan adjusts a borrower’s monthly payment depending on their current income and family size. This plan reduces the loan repayment period to as little as 10 years and also offers loan forgiveness at the end of the period. Finally, the Income-Contingent Repayment Plan adjusts the borrower’s monthly payment based on their income, family size, and loan amount. This plan may have a longer repayment period than other plans but also offers loan forgiveness after 25 years. Borrowers should carefully review the various repayment options and consider their own circumstances to choose the option that is best for them.

What are the different repayment options for student loans?

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