Are there different types of repayment plans?
There are two options to choose from: Regular Repayment – This option is where you make normal payments of principal and interest over the life of your loan. Interest-Only Repayment – This repayment plan supplies borrowers with the lowest initial monthly payment. Borrowers that select this plan have the flexibility to make interest-only payments for the first 24 months. Many borrowers right-out-of-school like this option as it affords them the flexibility of a lower initial monthly payment, giving them the cash flow they need as they enter into the workforce. After 24 months of interest-only payments, the payments will increase and be paid on a normal principal and interest schedule.
There are a few options to choose from: • Standard Repayment – A level repayment option wherein the payment amount remains the same throughout the entire life of the loan. • Graduated Repayment – This repayment plan supplies you with the lowest monthly payment to start, and gradually increases over time. • Extended Repayment – If your balance falls between $30,000 and $39,999 you are able to extend your term an additional 5 years (from 20 to 25 years). This option can be used with the standard or graduated payment plan.
