Repaying student loans is more complex than ever before. And considering that no two borrowers’ life situations are exactly alike, finding the best path forward can prove frustrating for those seeking relief.
“Despite the number of available repayment programs out there, too many borrowers just don’t understand what they qualify for and, as a result, are delinquent or falling into default on their loans,” said Jessica Ferastoaru, a student loans specialist with Take Charge America, a national nonprofit student loan counseling agency. “With a little homework, borrowers can arm themselves with the proper knowledge to select the right plan that meets their individual needs.”
Ferastoaru explains the major types of repayment plans:
Standard Plan: All federal loan borrowers are automatically enrolled in this plan, which requires fixed payments over 10 years. If you can afford payments, it’s your best option to pay down your loans and save on interest.
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