It is Easier for you to do Student Loan Repayment With Alum Financial Help

The student loan repayment plan you choose determines how you pay your student loan and for how long. Student loans are funds given to students to facilitate their learning to pay it back later. Most of these loans are given to students studying both undergraduate and postgraduate studies in institutions of higher learning. Student loan payment reduction happens but not to everyone.

You should be keen when selecting the repayment plan to make it comfortable to repay and continue with your work. Although plans that pay for a longer period of time are usually preferred by those who owe loans, it should be noted that the longer period you take to pay, the higher the amount you will be paying as interest for your loan.

Which are the Best Student Loan Repayment Plans?

There is no best Student Loan Repayment plans and worst plan for everyone. Every plan has its advantages and disadvantages hence you should be keen when selecting the plans to make sure it fits your situation. Here is a guide to take you through the process of choosing the best plan to repay your student loan.

Standard repayment
This plan involves making monthly repayments that take up to 10 years to cover the whole loan amount. In general, you will pay a lesser interest as compared to other plans.

Extended repayment
This plan gives you a relatively longer repayment period than the standard repayment plan. However, this repayment plan may only be available for you if your loan amount is over $25,000. Instead of paying your loan for 10 years like in standard plans, in the extended plan, you are allowed to pay your loan for up to 25 years.

Income-driven repayment
For those that are interested in starting with low repayments but are sure of getting more money in the future, income-driven repayment is the best plan for you. Income-driven plan of repayment allows you to make the payments on a monthly basis based on your income. Other than providing your financial income proofs, to be eligible for this plan, one must provide additional information like family size and information on your credit score and other loans you are settling.

Income information and tax collection details should also be accompanied by your application to pay your student loan with an income-driven plan. These are just three of many repayment plans. Are you still struggling to get the right plan to repay your student loan or you are seeking a student loan payment reduction? Get in touch with a student loan repayment advisor like Alum Financial to get help.