| Once students enter the real world, they will soon | | | | repaid. |
| feel the pressure of repaying the money they | | | | Graduated Repayment Plan |
| borrowed for the realization of their college education | | | | This plan choice allows borrowers to gradually enter |
| dreams. As the college loan repayment notices begin | | | | their loan schedule with lower monthly payment |
| to decorate your mailbox, how will you manage the | | | | expectations at the start of their repayment period. |
| debt and what are the options you may choose | | | | The further they move along, gradual increases in |
| from that will help your current financial | | | | monthly payments will occur, allowing individuals to |
| circumstances? | | | | pay off their debt in the same amount of time as |
| While many former students start to panic and | | | | the Level Repayment Plan. Having smaller payment |
| "stress out," others calmly review the many options | | | | requirements in the beginning does come with a price: |
| that college loan lenders offer. Most college loans | | | | higher interest added to the full amount of |
| come with a grace period before any money is | | | | repayment. |
| expected. This gives plenty of time for individuals to | | | | Income-Sensitive Repayment Plan |
| sort out their finances and approach a reasonable | | | | Associated with federal loans, this plan option allows |
| course of action. Depending on the college loan, this | | | | monthly payments to increase and decrease when |
| grace period may last six to nine months, which | | | | ups and downs regarding income occur. This means if |
| starts the day after you walk across the graduation | | | | you suffer a blow to the bank account, you don't |
| stage. The grace period also becomes active when a | | | | have to worry about your college loan repayment |
| student has left school or enters half-time enrollment | | | | worsening the situation. While this selection is the |
| status. | | | | most flexible, it also means you will be paying more in |
| Once the grace period begins, a lender or designated | | | | the long run. |
| company will send a student loan repayment schedule | | | | Extended Repayment Plan |
| through the mail. Some of the details you will come | | | | Borrowers who have a Federal Stafford, PLUS and |
| across include the total amount of money you are | | | | or Consolidation Loan under their belt and received it |
| expected to repay, an estimation of monthly | | | | after October 7th, 1998, can choose the Extended |
| payment totals, and the due date of your first | | | | Repayment Plan. The loans must also equal more |
| payment. You will also receive important information | | | | than $30,000 from the Federal Family Education Loan |
| that allows you to make the best decision on college | | | | Program. Repayment under this plan occurs for up to |
| loan repayment. When it comes to giving back what | | | | 25 years. |
| is due, there are four main college loan repayment | | | | Loan Consolidation |
| choices to consider: | | | | When you have borrowed money from more than |
| Level Repayment Plan | | | | two student loan lenders, you might want to look |
| Unless you choose to make a switch, most | | | | into the benefits offered through college loan |
| repayment schedules are set up under this option | | | | consolidation. This means that all of your college debt |
| while in the grace period. The Level Repayment Plan | | | | is lumped into one monthly payment that is much |
| means that borrowers will have to pay the same | | | | lower than separately paying each loan commitment. |
| amount of money on a monthly basis until all debt is | | | | |