Federal Student Loan Types, Explained
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Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans Direct Consolidation Loans
What Are Federal Student Loans?
Federal vs Private Student Loans
4 Federal Student Loan Types
Direct Subsidized Loans
Direct Unsubsidized Loans
Direct PLUS Loans
Direct Consolidation Loans
Benefits of Federal Student Loans
Federal Student Loan Repayment Plans
Graduated repayment: This plan spans 10 years and involves smaller monthly payments at the beginning, which increase over time. Extended repayment: This plan gives you up to 25 years to pay off your student loans. You can choose between fixed and graduate payments. Income-driven repayment: There are four income-driven plans, all of which adjust your monthly payments based on your income and extend your loan terms to 20 or 25 years. If you still have a balance at the end of your term, it could be forgiven.
Can You Refinance Federal Student Loans?
3 Student Loan Tips
Once the pandemic-related pause on federal student loan payments ends, going back to making payments may be hard on budgets. One solution is to refinance to a lower interest rate, longer loan term, or both, depending on your situation. (The tradeoff is that you’ll be forfeiting federal benefits such as repayment programs.) Find and compare your student loan refinance options. One pain-free way to pay down your student loan sooner: send in your tax refund to put against the principal balance. Since it’s money that has already been taken out of your pay, you won’t miss it. If you teach full-time for five complete and consecutive academic years in a low-income school, you may be eligible for federal student loan forgiveness.
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