To make your payments more affordable, repayment plans can give you more time to repay your loans or can be based on your income. Here you can look over the different options to see what is best per your circumstance.
Standard Repayment: The most common repayment plan is Standard Repayment. This plan spreads equal payments over your loan term. Generally, this is the most economical repayment plan.
The Standard Plan qualifies for Public Service Loan Forgiveness (PSLF). Keep in mind that your required 120 payments for PSLF should be made under an Income-Driven Repayment Plan. Any payments you make under the Standard Plan count toward your required 120 payments. However, it requires full repayment in 10 years, and you would have no loan balance left to forgive.
Graduated Repayment: With this plan, payments start low and gradually increase over the years. This can be a good choice for those who expect to earn more money as they advance in their careers. Payment amounts increase every 24 months until the loan balance is paid in full. You will pay more interest on this plan than on the Standard Repayment Plan.
Extended Repayment: Do you have more than $30,000 in outstanding FFELP or Direct Loans? Then the Extended Repayment Plan may be for you. This plan makes monthly payments more affordable, but it will take a longer amount of time to pay off the loan (up to 25 years), and you will pay more interest. Under the Extended Repayment Plan, you may choose standard payments (equal payments over the payment term) or graduated payments (payments that increase every two years).
Income-Sensitive Repayment: This plan can only be used for FFELP loans. This plan carries an annual adjustment to your minimum monthly payment based on your monthly gross income. You may choose this plan for up to five years, after which your account will defer to either the Standard or Graduated Repayment Plan.
Income-Driven Repayment: If you need a more affordable monthly payment amount tailored to your income, an Income-Driven Repayment (IDR) Plan could help. Borrowers need to submit their income and family size annually to maintain eligibility. Each of the four plans has unique qualifications for eligibility, and will affect your regular monthly payment amount in different ways. The Income-Contingent Repayment (ICR) Plan, Pay As You Earn (PAYE) Repayment Plan, and Revised Pay As You Earn (REPAYE) Repayment Plan are for Direct Loans only. The Income-Based Repayment (IBR) Plan is for both FFELP and Direct Loans.
Repayment Estimator:
https://studentloans.gov/myDirectLoan/repaymentEstimator.action
Contact us at 817-804-6727 or you loan servicer and let us help you make the right decision for your situation.
Postponing Payments: If You’re Having Trouble
It’s important to make your student loan payments on time. However, if you’re having trouble, there are options for assistance, including income-driven repayment plans, deferment, forbearance, and solutions to help you avoid delinquency and prevent default
Take Action Early
See where your money goes. Keep a list of everything you buy for a week or even a few days. You may be surprised to find items you could do without (or could get more cheaply). Review your budget to see where you can cut back on expenses.
Ask for assistance. Reaching out for help from a parent, mentor, or someone else who may be able to help doesn’t necessarily mean you’re asking to be bailed out of a financial problem. Chances are, they’ve had some valuable experience in money management and can work with you to develop a budget and a strategy for reducing debt.
Look for alternative repayment options. Contact your loan service or your default prevention specialist here at Ogle. They can work with you to help you get back on track, and are sometimes able to offer new or temporarily reduced payment schedules.
Deferment & Forbearance:
If you have a federal loan and think you may have a problem making on-time payments due to a temporary financial difficulty, you may be eligible for a period of deferment or forbearance.
Note that these options don’t release you from your loan, just from making scheduled payments for a brief time. Remember, interest may continue to accrue.
Deferment: Deferment is a period where you postpone making payments on your loan. Interest doesn’t accrue on subsidized federal loans.
Education Related Deferment: You are eligible if you are engaged in a graduate fellowship program, rehabilitation training, internship or residency, or teaching in a teacher shortage area.
In-School Deferment & Parent PLUS Borrower Deferment: You are eligible if you are enrolled at an eligible school at least half time, or if you are a parent with a Parent PLUS Loan who needs to defer repayment while your student is enrolled in school at least half time.
Unemployed Deferment: If you’re unemployed (or working less than 30 hours per week) & seeking full-time employment, you may be eligible for an Unemployment Deferment for up to three years.
If you’re working 30+ hours per week but you aren’t able to afford your monthly payment, you may consider a graduated or income-driven repayment plan.
Economic Hardship Deferment: You may be eligible for an Economic Hardship Deferment for up to three years.
Trouble Making Payments?
If you’re having temporary issues making your student loan payments due to unemployment or economic difficulties, be sure to let us know as soon as possible to avoid becoming delinquent.
Contact us at 817-804-6727 or you loan servicer and let us help you make the right decision for your situation.
Forbearance: Forbearance is a period during which your monthly loan payments are temporarily suspended or reduced. Payments on your loan principal are postponed, but interest will accrue during the forbearance period. Forbearance is intended to help you out in times of temporary need.
Note that the use of forbearance may cause the loss of borrower benefits – such as repayment incentives that can lower your interest rate – for certain loans. Cosigner release for private loans includes an on-time payment requirement. Forbearance may delay eligibility.
Contact us at 817-804-6727 or you loan servicer let us help you make the right decision for your situation.