When reviewing your student loan repayment options, you will find you have several of options to consider. You might think about using either the standard or extended repayment plan. Here are some things to consider about each of these options.
With the standard repayment plan, you will have 10 years to pay off your student loans. The lender will take the entire amount of your loan, add interest to that amount, and then divide it by 120 months. This is going to give you a larger monthly payment then you will have with other payment options, but you will be able to pay off your loan quicker. This plan also gives you the lowest amount of interest over the life of the loan.
The extended repayment plan allows you to increase the amount of time that you have to pay off your student loans. By extending the loan, you are going to significantly lower the amount of your monthly payment. You will have somewhere between 12 and 30 years to repay your loans. The lender will provide you with a repayment term, depending on how much money you have borrowed. Extending the loan is going to increase the amount of interest that you pay overall.