Why the standard repayment plan is best for you

When it comes to student loan repayment, there are many options available. With the other plans differing from the Standard student loan repayment greatly, it’s important to know the difference. Now before explaining why the Standard plan is the best for student mortgage repayment, this is not the best one if you are working in public service. If you do work in public service for 10 years, your loan can be forgiven so an income based plan is best.

The reason why the Standard repayment plan is best is because of the total amount that you will be saving during the student mortgage repayment process. Since the Standard plan allows you to finish paying off your student loan in exactly 10 years (in 120 payments), it’s the shortest lasting of all of the plans.

However, it can come at a cost. Since the minimum payment is highest through the standard repayment plan (at least to start), not everyone is able to afford it. If you can afford the amount every month that the minimum has been set at, then you should go with this option. In the end, it will save thousands of dollars compared to the other student mortgage repayment such as the Graduated plan and income based ones.

The student loan repayment process may be even shorter if your minimum is below $ 50. Since the minimum monthly payment has to be at least $ 50, you can finish paying off through the Standard plan in less than $ 10 years. Even if the 10 years is too short since it makes the payments higher, you can also extend it for up to 30 years.

If you don’t have a very high income or you do have a large family to support and you are worried that repayments can become uncomfortable for your household, you may always be better off having a repayment plan that takes your wages and circumstances into account on an annual basis, such since income based repayment plan for your federal student loans.

With the amount of money you save in the long run, it’s a no-brainer to use the Standard plan for student loan repayment, unless you truly do not have the income to make the minimum monthly payment.

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