Repaying Student Loans

Repaying student loans varies, depending on your type of loan. Direct Subsidized and Direct Unsubsidized Stafford Loans have a 6-month grace period that starts the day after you graduate, leave school, or drop below half-time enrollment. You don't have to begin making payments until your grace period ends.

That can help a lot with your college education and is probably one of the most popular ways to borrow money for college.

Generally, you will have anywhere from 10 to 30 years to repay your loan, depending on the repayment plan you choose. Your monthly payment amount will be based on how much you borrowed and how long you take to repay - just like a standard loan. You have four plans to choose from when repaying student loans:

1. Standard Repayment PlanFixed monthly payments for up to 10 years.

2. Extended Repayment PlanFixed monthly payments for 12 to 30 years, depending on the total amount of your Direct Loans.

3. Graduated Repayment Plan - Payments start off lower, then gradually increase, usually every two years. You repay your loan in full within 12 to 30 years, depending on the total amount of your Direct Loans.

4. Income Contingent Repayment PlanYour monthly payment is adjusted each year based on your annual income (includes your spouse's income, if you're married), size of your family, and the total amount of your Direct Loans. After 25 years, any unpaid loan amount will be forgiven.

You can change plans at any time and there is no penalty if you make payments before they are due or pay more than the amount due each month.

Here is a little more information to explain why repaying your student loan is necessary and what problems you may run into if you do not repay.

Trouble Repaying Student Loans