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: Make smaller monthly payments that gradually increase over 10 years under the Graduated Repayment Plan. Extended repayment: Make fixed or graduated payments over a period of 25 years under the Extended Repayment Plan. If you consolidate, you may be able to choose a term as long as 30 years, depending on how much you owe. Income-driven repayment: There are four income-driven repayment (IDR) 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. (Borrowers with original principal balances of $12,000 or less may be eligible for forgiveness of any remaining balance after making 10 years of payments under the SAVE Plan, which replaces the REPAYE Plan.)
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. There’s no prepayment penalty for paying off federal or private student loans early. 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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