Getting an education in our country is not something cheap. Sometimes, it is necessary to apply for college student loans if you want to qualify for a better future. So, if you are looking for student loan repayment options, then you’ve arrived at the right place.
One of the most important things to have in consideration when you get a student loan is to know when your monthly payments are due.
There’s a grace period that your student loan servicer will mention when you sign the contract. It’s fundamental to make your first payment on time so your credit history with the lender starts with the right foot. Also, if you make your student loan payments on time, your debt won’t increase as your interest rate keeps low.
In the case of federal student loan repayment, the first thing that you must ask yourself is what student loan repayment plan is best for me. There are many options that you might choose, but understanding your specific needs will give you the key to a financial plan that works for you.
In fact, there are some ways in which you can lower your payments with an extended plan, which don’t rely on your income. However, income-based student loan repayment is probably the best option for you.
Here at Flash Financial Guide, we will present to you all the knowledge you need to make a decision regarding the different student loan repayment programs.

Find the best balance between interest rates and lower payments
It is not difficult to find a student loan repayment program, you just need to give a close look at all the alternatives available. There are standard repayment plans that will allow you to make monthly payments over the course of 10 years.
These plans are great to end up paying less money in interest. Of course, you won’t be able to pay it all quick enough, so if you want to pay the money faster, you need to take a look at other options.
Knowing which student loan repayment plan is best is something subjective that highly depends on your current situation. Either way, there’s a common denominator that students usually decide to take to repay the cost of their debt: income-driven repayment.
How does income-driven repayment work?
Fortunately, there are four repayment plans implemented by the government that offer you income-driven to pay off your debt. The first of them is income-based repayment, which sets monthly payments between 10 percent and 20 percent of your discretionary income. In this case, it all depends on the money you are earning at the moment.
For instance, if you are unemployed, then you will pay 0 USD. This plan is ideal for long-term situations, like 20 or 25 years.
You can also qualify for a Pay As You Earn (PAYE) plan, mostly if you don’t expect your income to significantly increase over time. Naturally, you must have federal direct loans in order to qualify for it. In the case you are single and haven’t grad school debt yet, then the Revised Pay as You Earn (REPAYE) plan is the best combination of availability to borrowers.
However, it is important to keep in mind that any alternative that helps you decrease your monthly payment will result in you paying a higher interest at the end of your deal. You can apply to any of these plans on the official Student Aid website. Remember to review the requirements so you can choose wisely.
What to do in the case of private student loans?
Private student loans do not qualify for any of the income-driven repayment plans. It is important to consider this before making a decision. Naturally, you can ask your lender for refinancing programs, but your rates are definitely going up.
Other alternatives, such as student loan forgiveness are also available only if you are eligible. In this case, your remaining loan balance will be forgiven tax-free, but you need to make 120 qualifying loan payments.
Keep in mind that to qualify you must be under a standard repayment plan or any of the income-based options.
With that being said, the importance of paying attention to detail is bigger than ever.
Fortunately, out of all the options available, there must be one ready to help you out with your current situation. Take a look at our blog articles if you want to have more tools to help you improve your financial situation.