Student Loan Repayment Schedule

scheduling loan repaymentsBorrowing to pay for college seems to have become the norm in America. The Huffington Post reports that more than 40 million Americans are facing student loan debt. Repaying students loans is now one of the many realities of attending college. Fortunately, there are different loan repayment plans available based on the type of loan borrowed.

Student Loan Recap

With the increasing cost of college tuition comes an increasing need for students and their families to seek federal and private loans. To recap, students will most likely to borrow the following types of loans for college:

Direct or Stafford Loan Repayment

Stafford loans are subdivided into two categories, subsidized and unsubsidized. “Subsidized” means the federal government will pay the interest that accrues on the principal balance while the student is in college or in any type of authorized deferment. “Unsubsidized” means the borrower is responsible for any interest that accrues. Repayment terms are similar for both types of Stafford loans. Repayment usually begins 6 months after graduation, and lasts 10 years, but can be longer depending on the type of repayment plan selected. It is important to note that selecting a longer repayment term will result in paying more money over the life of loan.

PLUS Loan Repayment

These loans are available to the parents or legal guardians of students. Repayment usually begins as soon as the loan is disbursed, but under some circumstances, payment may be postponed until after the student graduates. Borrowers typically have up to 10 years to repay. However, there are payment plans available that may extend the repayment period. Deferment or forbearance options may be available to borrowers who meet certain criteria.

Girl in library

Perkins Loan Repayment

A Perkins Loan may be offered to students in the case of exceptional financial need. Repayment usually commences 9 months after graduation, and borrowers usually have up to 10 years to repay. For information on repayment terms or deferring a Perkins Loan, it is advisable to contact your school.


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