Borrower’s Before Enrolling (You are probably in one of these 2 programs)
Standard Repayment program
In this plan, loan payments are calculated based on the size of the loan and the term of the loan. The same as any normal loan.
The Standard Repayment Plan might be a good option for you if:
- You want to pay off your loan as soon as possible, and have less than 30 years left to pay
- You do not qualify for an Income Based Repayment Plan because you have a higher income
- Your loan amount is small enough that you do not want to extend the amount of years you have on the loans
Graduated Repayment program
In this plan, its very similar to the standard plan however you only pay interest on the loan for the first two years, the payments will increase semi-yearly (every two years). The amount of payments is based on your outstanding loan amount, the same as for the standard repayment plan.
The Graduated Repayment plan may be a good option for you if:
- The Income Based plans do not make sense for you, you do not qualify for them due to higher income.
- You want lower payments now, with slight increases every two years until the loan is paid off.
- You have a job that you plan to stay with that will give you regular pay raises in order to be able to afford the increase in amount due every two years without causing a financial hardship.
Borrowers After Enrolling
Income Driven Repayment Program
- Revised Pay as You Earn Repayment Plan
- Pay As You Earn Repayment Plan
- Income-Based Repayment Plan
- Income-Contingent Repayment Plan
The income driven repayment forgiveness program has loan forgiveness built in it, which the government will pay your outstanding balance (principle + Interest) at the end of the program. If you qualify for this repayment plan due to a financial hardship, and your monthly payment is zero, your interest for the first three years is forgiven. If your payment is not zero, but is less than your regular monthly payment would be, then the difference in the interest paid versus the interest accrued is forgiven. Usually, this repayment plan offers the lowest payment option for students with a financial hardship. Your payment amount will never go above 10%-15% of your adjusted gross income above the poverty line for your family size depending which repayment program fits your situation. If you are married, and file a joint Income Tax return, your spouses’ student loan debt may be accounted for when figuring out your payment.
How Does It Work?
If you are approved, the government will step in and enroll you into their income driven repayment program. You are not responsible or required to pay your old plan anymore.
The income driven repayment program will provide you:
- Brand New Very Low Affordable Monthly Payment
- 3 main considerations when giving you a new low monthly payment
- Income (AGI)
- Family Size
- Student Loans Debt Size
- 3 main considerations when giving you a new low monthly payment
- New Term
- 240, 300, or 120 Months (PSLF)
Benefits:
- Lower monthly payment
- Lower outstanding balance
- Helps avoid default
- Easier to pay back your loans
- Government forgives the remaining balance of your current loan debt (principle + interest) at the end of the new term.
Alumni Support Center is a specialize company that educates student loan borrowers on government programs and prepare applications for applicants who wish to enroll into the various programs offered through The Department of Education. We will counsel and walk you through your options and help prepare and finalize your documents, depending on which program(s) you choose. Alumni Support Center is not affiliated with Federal, State, or Local Government agencies. Alumni Support Center is not a loan servicer or originator. Consumers with student loan debt have the legal right to use an attorney or process federal student loan services documentation on their own behalf through the Department Of Education.