In order to make loan repayment easier and affordable for you, the federal government offers a range of repayment programs and options. Choosing the right program is crucial to your ability to repay your student loan in time and without much burden on your finances. At TurboDocs we provide comprehensive and complete student loan repayment options including help through counseling and consultation. We work with highly qualified experts with proper understanding of federal loan programs and financial management. We will help you find the right federal student loan repayment option based on your specific needs and requirements. We help you make a decision that remains feasible in the long term.
Loan repayment plans can hugely impact your ability to pay back your loans on time. Repayment plans also affect the total amount that you pay back to your borrower. Right selection of repayment plan is extremely important in order to achieve a debt-free, stable financial position. However, with so many repayment plans it often becomes difficult to choose the right repayment plan that suits your monthly income and other preferences.
TurboDocs is an organization that helps students and other individuals in managing their finances and organizing their loans. We offer document processing services and help our customers in finding the best repayment plan that can help them to pay back their loans in a timely and stress-free manner.
If you want to get advice on selecting the repayment plan for your student loans or want to change your repayment plan through loan consolidation, contact our professionals at (855) 782-0744.
Standard loan repayment plan offers the lowest rate of interest among all types of repayment plans. It helps you save money by allowing you to pay off your loan in the shortest term, which results in a lower interest amount. Loan borrowers automatically place you on the standard repayment plan if you do not opt for any repayment plan at all.
Extended repayment plan is very similar to standard loan repayment plan, except that the loan is paid back over a longer period, typically extending up to 25 years. The repayment period depends on the principal amount and borrower’s preferences.
With extended loan repayment plan, repayment is stretched over a longer period, which decreases the amount of monthly installments but increases the amount of interest paid over the lifetime of the student loan.
Graduated Repayment Plan is one of those loan repayment plans that can help you to lower your monthly repayment installments. With graduated repayment plan, you start with paying lower monthly payments that increase on the completion of first two years of the repayment term.
Graduated repayment plan is best for individuals who have low income now, but they expect to earn more with time. The repayment term may extend over 10 to 30 years depending on the principal amount and type of loan.
The Pay as You Earn or PAYE repayment plan was introduced in 2011 in order to help 1.6 million students deal with their student loan debts. The PAYE repayment plan makes the repayment process affordable to the borrowers. Under the PAYE repayment plan, the borrower pays back the loan in monthly installments that is based on their income and family size.
Income-based repayment plan is one of the most widely used income-driven loan repayment plans by students. With income-based plan, the loan repayment is made affordable to the borrower by capping the monthly installments based on their family size and monthly income. It also offers student loan forgiveness to students who make qualifying monthly payments for 25 years.
Income-contingent loan repayment plan is designed to help students pay back their federal student loans without facing financial hardships. It has a repayment term of 25 years during which the borrower is required to make monthly payments based on their income, family size, and principal amount.
The income-contingent repayment plan is quite similar to the income-based repayment plan except that the applicant is not required to be facing a partial financial hardship in order to qualify for the income-contingent repayment plan. In the income-contingent plan, the monthly payments are usually 20 percent of the borrower’s discretionary income.