Student Loan Guide
Student loans help finance your education, but understanding your repayment options can save you thousands of dollars over the life of your loan.
Types of Student Loans
- Federal Direct Loans: Government-backed loans with fixed interest rates and flexible repayment options
- Private Student Loans: Offered by banks and credit unions, often with variable rates
- PLUS Loans: Federal loans for graduate students and parents of undergraduates
Repayment Plan Options
- Standard Repayment: Fixed payments over 10 years - lowest total interest
- Graduated Repayment: Payments start low and increase every 2 years
- Extended Repayment: Lower payments over up to 25 years
- Income-Driven Plans: Payments based on your income and family size
Money-Saving Tips
- Make extra payments: Apply extra money to principal to reduce interest
- Pay during school: Even interest-only payments can save thousands
- Consider refinancing: Private refinancing may offer lower rates for qualified borrowers
- Automatic payments: Many lenders offer rate discounts for autopay
- Tax benefits: Student loan interest may be tax-deductible
Important: Federal loans offer protections like deferment, forbearance, and loan forgiveness programs that private loans typically don't provide. Consider these benefits before refinancing federal loans.