What are the different repayment options for student loans?

One of the most important aspects of student loan laws in Kansas is the repayment options available for borrowers. These options can help borrowers come up with a repayment plan that works for them and their budget. The Standard Repayment Plan is the most commonly used and allows for up to 10 years of repayment time. Under this plan, borrowers make a fixed payment each month until the loan is paid off. The Graduated Repayment Plan is an option for those expecting higher earning potential with the passage of time due to career growth or degrees. Monthly payments are lower in the beginning and then increase over time. The Extended Repayment Plan is for those borrowers who have more than $30,000 in loan debt. This plan allows for up to 25 years of repayment time with either fixed or graduated monthly payments. The Income-Based Repayment Plan is available to those borrowers whose income is too low to make the payments on the Standard Repayment Plan. Payments are based on the borrower’s income, family size, and total loan debt. The Income-Contingent Repayment Plan is available to those with Direct Loans. This plan is the same as the Income-Based Repayment Plan except the payments are also based on the borrower’s income, total loan debt, and the interest rate. Finally, the Pay As You Earn Repayment Plan is available to borrowers with Federally-backed loans from 2012 or later. Payments are based on income and family size and are capped at 10% of the borrower’s discretionary income. In summary, there are a variety of repayment options available to Kansas student loan borrowers. Under the right plan, borrowers can make payments that work with their budget and eventually pay off their loan debt.

What are the different repayment options for student loans?

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