Federal Family Education Loan Program (FFELP) Loan Repayment

Federal Family Education Loan Program (FFELP) Loan Repayment

Regards to Your Loan

Rate of interest for Variable Stafford Loans(Fall 2006 – springtime 2007)

  • 6.8 percent whilst in school and during grace-period
  • 6.8% during payment
  • 8.25% optimum limit

Price is great through June 30, 2007. Will reset starting July 1, 2007. Grace Period for 6 months (start when last enrolled at the least half time).

Repayment Alternatives

  • Prepayment – you may possibly pre-pay all or section of your loan at any right time without penalty. This might significantly lower your total interest expenses.
  • Standard Repayment Plan ? Under this course of action, your payment per month will stay the exact same on the repayment period that is entire. This payment plan is considered the most economical. Term is as much as 10 years.
  • Graduated Repayment Arrange ? As its title shows, this plan of action starts with smaller payments, accompanied by an increase that is gradual the re payment into the re payment quantity at certain intervals. Your rate of interest additionally the payment duration stay the exact same, however you will probably pay more interest throughout the term associated with the loan. Term is as much as 10 years.
  • Income-Sensitive Repayment Arrange ? This plan ties the dimensions of your payment to your revenue level with corrections to your repayment quantity made annually. Your payment must enough be large to cover interest fees. This plan of action can raise the quantity of great interest you spend on the term of one’s loan. Term is as much as 10 years, but payment might take longer than that. In that case, your loan provider uses forbearance to lengthen the word for approximately five 12 months ( fifteen years total).
  • Consolidation ? Your outstanding loans could possibly be combined into just one brand new loan with new terms. You will have an interest that is new and payment could expand as much as three decades. Make sure to think about the following before carefully deciding to combine:
  1. Consolidated loans could have a greater rate of interest. (more…)

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