The time is quickly approaching for recent college graduates to pick their student loan repayment plan. Through the month of September we will be touching on the various repayment options.
This week we will start off with the standard repayment option. Prior to your grace period ending if you don’t elect to do anything with your student loan payments your loans will default to the standard repayment plan. This payment plan generally has a 10 year repayment period, unless you have a direct consolidated loan or a FFEL consolidated loan, then the payment period may be 10 - 30 years. You will make a fixed monthly payment until the loan is paid off. Compared to other repayment options, this option will likely have higher payments, however, if you aren’t going for loan forgiveness this plan will result in your paying the least amount of interest over the term of the loan. Thus costing you less money in the long run.
Don’t feel you can make those payments? Stay tuned or contact Becky (becky@RootedPG.com) for an analysis.