College Loan Tip: Changing repayment plans for federal student loans


Friday, February 28, 2020

Find out when and how often you should change the repayment plan for the federal student loans that you have acquired from completing a degree at a U.S. college or university.



When repayment began for your federal student loan, you either selected your own repayment plan or one was automatically assigned to you. Keep in mind that you can change your plan at anytime but also remember that there are certain key times where you will want to consider the repayment plan.


Choosing a Repayment Plan

You can usually choose a plan, depending on income level and other circumstances such as family size. You can change your plan as many times you want but remember that any changes will likely affect the total amount that you are expected to pay.

The average repayment period for federal student loans is 10 years. Standard repayment is typically the quickest way to pay everything back. This implies less interest and more money saved in the long run.

However, if you cannot afford your monthly payments under this standard plan, you should consider the following options
  • Graduated repayment
  • Extended repayment
  • Income-driven repayment

These options are more manageable on a monthly basis, but they do require you to pay more overall.

Variables to Consider

Do you work for a qualifying government organization or nonprofit and want to apply for Public Service Loan Forgiveness? You must complete at least 120 qualifying payments in an approved repayment plan. 

Do not forget any outstanding interest that you may have accrued before switching repayment plans. Interest will add up.

If you are going to enroll in an income-driven repayment plan, you will need to apply with a student loan servicer or online. This will require an application at the start of each financial year to provide updated income and family size information. Missing the deadline will result in increased interest.

When should you consider your repayment plan?

  1. You are struggling to repay on a monthly basis.
  2. You have a new job or a salary increase – Can you make higher monthly payments?
  3. You are going through major life events such as buying a home, getting married, or adding a new addition to your family.
  4. You are going back to school – Loans will automatically go on deferment but some of your loans may still continue to accrue interest

Are you thinking about earning a bachelor’s degree, master’s degree, or doctoral degree (PhD) at any of the top colleges and best universities in the country? You must always remember—these bachelor’s degree, master’s degree, and doctoral degree (PhD) programs come with a definite cost. Colleges and universities charge tuition rates and you may not be able to afford these bachelor’s degree, master’s degree, or doctoral degree (PhD) programs upfront. 

A combination of financial aid and loans can help you pay for your bachelor’s degree, master’s degree, or doctoral degree (PhD). Just remember to exercise caution and reach out to loan counselors or service providers when it comes to planning the repayment of loans you take out for your bachelor’s degree, master’s degree, or doctoral degree (PhD).




Get Instant Information about the University

By clicking “Get Information Now,” I hereby authorize startuniversity.com, their dependents, subcontractors, or associates to contact me in regards to education proposals offered by universities in the United States.