Cheryl Winokur MunkThe Wall Street Journal, 3/9/20.
Graduated repayment plan. Open to all federal loan borrowers.
Payments are lower at first and then increase, usually every two years.
Extended repayment plan. Only certain loans qualify; payments can be extended for u to 25 years. You’ll pay more interest tha in the traditional 10 year repayment plan.
“There are four income-driven plans for which borrowers may qualify. Each of these plans limits borrowers’ payments to a percentage of their income.” Payments are limited to a percentage of income.
Income-sensitive repayment. “This is only for borrowers who have Federal Family Education Loans, a loan offering that was discontinued in 2010.”
“In general, if you are facing a hardship that is likely to be short-term, you could be better off with a deferment or forbearance, say for a month or two.”
“However, struggling borrowers will be better off changing their repayment plan than seeking deferment or forbearance.”
Also check out:
Student Loan Sherpa: https://studentloansherpa.com/ a website for student-loan education, strategy and borrower advocacy.
Edvisors helps students and parents make informed decisions about ways to pay for college costs and financial aid, including scholarships and student loans. https://www.edvisors.com/
Source: Financial Planning for Women