There is the level repayment plan where you pay the same amount every month so you know what to expect. However, there is a variable interest rate that is involved in this program that could alter your monthly payments. In the long term, this is the most affordable plan of them all. There is the graduated repayment plan that offers low interest rates now and then they steadily increase in the future. This works well if you have graduated and it will give you time to make a living before you start making larger payments.
Another type of student loan repayment is the income sensitive plan that is designed for federal student loans. This option is purely based on the amount of money that you are making. However, you are expected to pay for it on an annual basis and could end up costing you a lot more in the long run.
There is the extended repayment plan that is available for specific loans like the Stafford, PLUS and consolidation loans. To qualify for this plan, you need to have a certain number of student loans and the details of when you received these loans. Ensure that you select the right school loan repayment option that is manageable and convenient for you.
Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Loans and how to effectively manage them. Cash Loans [http://macypages.com/finance/?p=761]
