Loan Repayment Plans
Contact your lender to discuss loan repayment options for your student loans.
The following are ways to pay off your loans for Direct Loans and Federal Family Education Loan Programs: see federal student loans
It's useful to think of which type of repayment work options is best for you in several ways:
- How long do I want to pay off the loans?
- Do I want to have lower monthly payment, but for a longer period of time and a higher loan amount overall?
- Do i want to work for nonprofit or government sector, so that I will qualify for loan forgiveness but likely will earn less of an income?
- How much loan can I afford to pay per month?
10 years: Standard Repayment Plan, Graduated repayment plan
15 years: Income Sensitive Repayment Plan, all loans paid off
25 years: Extended Repayment Plan, all loans paid off
20 years, with loan forgiveness after: Revised as You Pay Plan, Pay as you Earn Plan
20-25 years: Income Based Repayment Plan, with loan forgiveness
25 years: Income-contingent Repayment Plan, with loan forgiveness
2) The amount of your monthly payment vs. overall loan amount you pay
Generally, the longer the time period to pay off the loans, the lower your monthly payment will be. But you'll end up paying more over time than the 10-year standard plan.
3) Do you want to qualify for loan forgiveness?
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loan after you make 120 qualifying monthly payments under a qualified plan, working full-time for a qualified employer. Currently to qualify, you must be employed by a US federal, state, local or tribal government or a not-for-profit organization full-time, have Direct Loan (or consolidate other federal student loans), repaying your loans under an income-driven repayment plan, and make 120 qualifying payments. This would be an option to consider if you are interested in working in the public sector after medical training.
