Understanding Student Loans

Do you have any type of student loan debt? Then you might want to understand the characteristics and your repayment options. Below is PDF (click on Loan Table) of a table of the types of loans available along with the types of repayment options for each loan.

Loan Table


1. There are different types of loans for both Graduate and Undergraduate type of schooling

2. Stafford Subsidized loans appear more favorable because the Government pays the interest while you are in school. Not only that, but the interest rate is the lowest among all the other loans

3. For Graduate school Perkins loans may be a great fit, although you don’t have the option of income based repayments once you are done with school

4. Grad Plus loans are the alternative to Perkins. They allow more flexible income based repayment options. The formulas that are used are based on the poverty levels and the amount of income you make so that is the major consideration for repaying your loans

5. If you select an income based repayment option be aware you must re-select the option annually before your anniversary date in order to continue with that specific option

6. Do you expect to earn a very low income out of school? Perhaps undergraduate, but most graduate programs lead to more money cancelling out a majority of the income based repayment options, so keep that in mind

7. Loans can be forgiven but only under certain circumstances and a very long period of time

8. Interest rates vary depending on what type of loan you have, so be sure to check your statements or call your loan provider to see what your interest rate will be or is

9. A majority of loans have to be repaid starting 6 months after school. Prepare now and even start paying before you have to, which allows you to save on interest. Most loans allow for you to pay off loans early or make extra payments, if that is something that is a wise financial decision for your situation

10. Don’t stop paying your loans just because you don’t understand them, ask lots of questions and use online resources

Each loan and repayment plan is unique in characteristics and strategies.

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