When it comes to your federal student loans you have several repayment options.  Determining which option is best for you can be a tricky question as it depends on several factors.

Your repayment options include the following:

  1. Standard Balanced-Based Repayment –this is the standard plan that you will be placed on if you do not elect a different plan. This is a 10 year plan in which you pay your student loans off in equal payments over the 10 year period.
  2. Graduated Balance-Based Repayment –this plan is similar to the normal balanced-based repayment plan, but your payments are lower in the beginning and step up every two years. This plan is also based on a 10 year period.
  3. Extended Balanced-Based Repayment –this plan is similar to the standard balanced-based repayment only is over a 25 year period instead of 10 years. Your balance must be over $30,000 to qualify for this plan.
  4. Graduated Extended Balanced-Based Repayment – this plan is similar to the graduated balanced-based plan where your payments start a at lower amount and step up every two years, only it’s over a 25 year period instead of 10 years. Your balance must be over $30,000 to qualify for this plan.
  5. Income Contingent Plan – this plan considers your income and the balance of your loans. Not all loans are eligible for this plan.  Under this plan you pay 20% of your discretionary income.
  6. Income Based Repayment Plan – this plan considers your income only. Not all loans are eligible for this plan.  Under this plan you pay 15% of your discretionary income.
  7. Pay As You Earn Plan – this plan is similar to the income based repayment plan except under this plan you pay 10% of your discretionary income. Again, not all loans are eligible for this plan.
  8. New Income Based Repayment Plan – this plan began in 2014 and is only eligible for loans starting July 1, 2014. Under the plan you pay 10% of your discretionary income. Again, not all loans are eligible for this plan.
  9. Revised Pay As You Earn Plan – this plan is the same as the original Pay As You Earn Plan only it removes some of the restrictions on which types of loans are eligible. Again, not all loans are eligible for this plan.

Depending on what plan you qualify for you payments could be as low as $0 per month.  Yes, $0 per month!

Let the experienced Student Loan Attorneys at the Ciment Law Firm explain what your repayment options are and set you on the path to Student Loan Debt Resolution and financial freedom.