Saturday, December 21, 2019

If you select the Graduated Repayment Plan

If you select the Graduated Repayment Plan, your monthly payments will start out smaller, and then slowly increase as time goes by. Usually, your payments will increase every two years. You will end up paying more overall with this plan because your loan’s principal will decrease more slowly at first which results in more interest being assessed. This plan’s term is typically 10 years (between 10 and 30 for consolidated loans). If you make a lower amount of income now, but expect to gradually increase your earnings as time goes on, this plan could be right for you.
Summary:
  • Payments start small, increase every two years
  • A slightly higher overall cost
  • A 10-year term
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