Student

TL;DR: Direct PLUS Loans are federal loans for parents of undergraduate students or for graduate/professional students. They help cover education costs not met by other financial aid. Although they have flexible repayment options, they come with higher interest rates and fees, making it essential to weigh them carefully before borrowing. What Are Direct PLUS Loans? […]

TL;DR: A Graduated Repayment Plan starts with lower payments that gradually increase every two years, helping borrowers manage early financial constraints. The loan term typically lasts up to 10 years. In contrast, a Graduated Extended Repayment Plan also begins with low payments that increase over time but extends the repayment period to up to 25 […]

TL;DR: A standard fixed repayment plan is the typical 10-year option, where monthly payments stay the same until the loan is paid off. The fixed extended repayment plan allows borrowers to pay over a longer period, usually up to 25 years, resulting in smaller monthly payments but more total interest over time. When it comes […]

TL;DR: A fixed repayment plan offers consistent monthly payments over the life of the loan, providing stability but potentially higher upfront costs. In contrast, a graduated repayment plan starts with lower payments that gradually increase, making it easier to manage in the early years but potentially costing more overall due to accumulating interest. When it […]

TL;DR: An Income Contingent Repayment (ICR) plan is a federal student loan repayment option designed to make monthly payments more affordable by basing them on a borrower’s income, family size, and total loan balance. Payments are capped at 20% of discretionary income, and any remaining balance is forgiven after 25 years of qualifying payments. Navigating […]

TL;DR: Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE) are both income-driven student loan repayment plans, but they have key differences in eligibility, payment calculation, interest subsidy, and spousal income consideration. PAYE is more restrictive but can offer a lower payment cap for those who qualify, while REPAYE is more accessible […]

TL;DR: A Pay As You Earn (PAYE) repayment plan is a federal student loan repayment option that caps monthly payments at 10% of your discretionary income, with any remaining balance forgiven after 20 years for undergraduate loans or 25 years for graduate loans. This plan is ideal for those with high debt relative to income […]

TL;DR: New income-based repayment (IBR) plans offer enhanced benefits compared to traditional IBR options. They lower monthly payments to around 10% of discretionary income, reduce or eliminate interest accumulation, and shorten forgiveness timelines. Additionally, these plans simplify the application process by integrating with tax data, making adjustments automatically. Designed to better meet today’s economic challenges, […]

TL;DR: An Income-Based Repayment (IBR) plan is a federal student loan repayment option that adjusts monthly payments based on your income and family size, usually capping payments at 10-15% of discretionary income. IBR can lower payments during financially tight periods and offers loan forgiveness after 20-25 years of qualifying payments. It’s ideal for borrowers with […]

TL;DR: When choosing a loan for grad school, federal loans like Direct Unsubsidized and Grad PLUS often offer the best options due to lower interest rates and flexible repayment plans. Private loans can work if you have good credit but may lack protections like income-driven repayment. Key things to consider are interest rates, repayment flexibility, […]