Students are always found struggling with program fees, tuition bills and various other study-related expenditures like lab materials and books. Student loans can always come as good help for parents who need a kind of financial support for meeting the educational expenses of their children. Student loan consolidations can also be considered for lower monthly payments on non-subsidized existing student loan repayment programs.
People who look out for Federal student loans are generally the ones looking for lower monthly payments. The student debt figures are found topping the credit card debts and this is the only reason why many households require immediate assistance. Very similar to the other debts, it is necessary to remain current on the payments while covering various other living costs. There are many students who simply avoid payday loans online and student loans. For such students there is nothing to worry as they can always take the advantage of the best Student Loan Repayment Program. Some student loan repayment programs have been detailed below:
Standard Repayment Program
The standard repayment program carries very low interest rate in comparison to the other programs. Minimum payment per month is around $50 for ten years. This repayment loan works for all Federal Student loans and Direct loans.
Graduated Repayment Program
In the graduated repayment program the payment generally starts put very low and increases gradually after every two years for a time span of ten years. overall cost incurred in this program is usually more expensive in comparison to the standard repayment program and it covers the same loans mentioned above.
Extended Repayment Program
The extended repayment program provides more repayment time for the loan which is up to twenty-five years. This repayment program covers all the above mentioned loans but it has varying benefits as per the loans found in the portfolio. The payments are lower in comparison to the standard repayment program due to the extra time added to the term of the loan. This student repayment program costs more over the loan length in comparison to the standard repayment program. It is important to carry out a thorough check with a service that provides help in the field of student loan debt in order to get more information on this repayment program.
Income-Based Repayment Program
The income-based repayment program covers Direct and Federal student loans and the consolidated loans which were never made to parents. The monthly payments are calculated based on 15% of the discretionary income of the applicant and 150% of the resident poverty guidelines of the state for their family size.
The payment is generally recalculated every year. Thus, with an increase in income, the monthly payments also increase. However, there must be some signs of financial problems. post 25 years of regular payments, outstanding balance is forgiven. Overall price of this repayment program is generally higher in comparison to the other repayment programs and there might even be tax charges for the repayment amount forgiven.
The Pay As You Earn Repayment Program
The pay as you earn repayment program also covers Federal and Direct student loans along with consolidated loans not inclusive of parental loans. Maximum monthly payments are generally 10% of the discretionary income of the borrower. Payments keep on changing as the income changes for a loan term of 20 years. the pay as you earn repayment program is the latest Student Loan Repayment Program provided by the Department of Education. The borrowers who go for this repayment plan must show some signs of financial problems. the payments are generally lower in comparison to the standard repayment program and the payments can be forgiven after 20 years along with tax charges.
Income-Contingent Repayment Program
The income contingent repayment program is a program where payments are generally calculated based on loan amount entered along with family size and income. Payments keep on changing with changes in income for loan term of 25 years. post 25 years, the payments for the remaining loan balance are forgiven but there are taxes levied. These are probably some of the best student loan repayment programs that can always be considered.