When repayment begins on federal student loans, there are several options you can choose from depending on your financial situation. The standard repayment plan allows you to pay off your loans in a 10-year period. This is the quickest option that costs you the least amount of interest over the life of the loan. The extended plan allows you to pay off your loan in equal payment over a period of time up to 30 years. This will cost you more in interest, but could make your payments more affordable. Another option is the graduated plan. This repayment option again allows the borrower to make payments over a period up to 30 years; however, the payments start out low and gradually increase over the life of the loan. This option is based on the assumption that the borrower’s income will gradually increase during the life of the loan.

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