How Federal Student Loans Work: Ultimate Guide

If you’re heading off to college, you might be wondering, How do federal student loans work? Well, federal student loans are provided by the government to help students (or their parents) pay for college or graduate school. There are several federal student loan types, some of which have better terms than others. For most federal […]

How the Extended Repayment Plan Works 

If you owe $30,000 or more in federal student loans and need extra time to pay them off, the Extended Repayment plan could help. This plan extends your loan terms to 25 years, which is 15 years more than the standard 10-year plan. It also allows you to make fixed or graduated payments during this […]

How the Graduated Repayment Plan Works for Student Loans

As a new college graduate, you’ll likely start with a low salary and boost your income over time. That’s why the Graduated Repayment Plan can be appealing, since it involves low student loan payments in the beginning which gradually increase over the years. While this approach can make your initial payments more affordable, it may […]

Subsidized vs. Unsubsidized Student Loans: Key Differences

What’s the difference between unsubsidized and subsidized student loans? Well, the government covers the interest that accrues on subsidized student loans during periods of deferment. But it doesn’t typically help with interest charges on unsubsidized loans. Read on for a comparison of subsidized vs. unsubsidized loans so you understand how they’re different (and how they’re […]

Deferment vs. Forbearance: Which Is Better? 

If you’re feeling crushed by the weight of your student debt, it can feel impossible to see a way out. Fortunately, you might have the option to pause payments temporarily on your federal student loans through deferment or forbearance. Generally speaking, deferment should be your first choice if you have subsidized loans, but forbearance works […]

How Income-Contingent Repayment Works 

As one of the four income-driven repayment plans, Income Contingent Repayment (ICR) adjusts your student loan payments to 20% of your discretionary income. But it probably shouldn’t be your first choice of income-driven plans, unless you have parent loans. Read on to find out why. How Income-Contingent Repayment works What loans are eligible for ICR? […]

Income-Based Repayment: Ultimate Guide

Introduced in 2009, the Income-Based Repayment (IBR) plan adjusts your student loan payments to 10% or 15% of your discretionary income, depending on when you borrowed. If you’re not bringing in any income, your payment could be as low as $0 per month on IBR (score!). Read on to learn exactly how the IBR plan […]

Revised Pay As You Earn: Easy Guide

Introduced in 2015, the Revised Pay As You Earn plan was designed to make its predecessor, the Pay As You Earn plan, accessible to more borrowers. Anyone can apply for the Revised Pay As You Earn repayment plan (except for parent borrowers). It usually doesn’t matter when you borrowed or what your income is — […]

Pay As You Earn: What You Need to Know

Introduced in 2012, Pay As You Earn is one of four income-driven repayment plans for student loans that can lower your monthly payments. In fact, it caps payments at 10% of your discretionary income while extending your terms to 20 years. If you still have a balance after this time, it will be forgiven. But […]

Revised Pay As You Earn vs. Pay As You Earn: Which Is Better?

Pay As You Earn, along with its newer cousin Revised Pay As You Earn, is an income-driven repayment plan for student loans that adjusts your payment to 10% of your discretionary income. While both PAYE and REPAYE can help you get relief on your student loans, each works a little differently. Read on for a […]