Consider the Student Loan Payment Options

thing to consider is what repayment options are available on the loan. This can make all the difference in the world on if you can afford a loan or not. Here again federal loans tend to have a leg up on private loans as they have more flexible repayment options and better forgiveness policies.

Most all federal loans will offer:

• Standard monthly repayment plans
• Income contingent repayment plans
• Extended repayment plans
• Graduated repayment plans

Whether or not a private loan will have these options is a toss up dependent on the lending facility and the credit situation of the borrower. These options have a great impact on how much your monthly payments will be and how much you can manipulate it to meet your needs.

Other benefits of federal loans that might not be available with private loans include having no prepayment penalty, the ability to defer payments, being able to switch your method of repayment, and having a 6-9 month grace period after graduation where repayment doesn’t have to be made.