Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What federal student loan repayment plan produces the lowest total cost in interest paid over the life of loan repayment?

April 26, 2017COST Federal life lowest paid Plan produces repayment student loan total

0

10 Posted

What federal student loan repayment plan produces the lowest total cost in interest paid over the life of loan repayment?

1 Answer

0

10 Posted

The Standard Repayment Plan produces the lowest cost in total interest paid when repaying Federal Stafford, Federal PLUS and/or Federal Consolidation Loans. This plan requires the highest initial monthly loan payment of the five available federal student loan repayment plans. This causes the loan principal to be repaid more quickly, and thus, results in less interest accrual than with the other four plans.