January 28, 2022

What Is The Best Student Loan Repayment Plan?

Repayment

The process of getting a student loan isn't nearly as difficult as planning to pay one-off. For example, you can choose from multiple income-driven repayment plans (IDRs) if you are interested in paying down federal student loans beyond the standard 10-year plan.

Upon leaving school, you will be able to choose a repayment plan after completion of exit counseling. In the absence of this, your loan will be automatically placed on the 10-year standard repayment plan. Once you have begun repaying your loans, however, you can make changes at any time. Here is a guide that can help you decide which option is best for you.

If you want to pay less interest

Best repayment option: standard repayment.

You pay back student loans in equal monthly installments over ten years under the standard student loan repayment plan. If you can afford the standard repayment plan, you will pay less in interest and repay your loans faster than in the other repayment plans offered by the government.

How to enroll in this plan: When you begin repayment, you are automatically enrolled in the standard plan.

If you need lower student loan payments

Best repayment option: income-driven repayment.

Repayment plans based on income include income-based, income-contingent, Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE). Your income must be too low to afford the standard payment if you choose these options.

The monthly payment amounts for income-driven plans typically range between 10% and 20% of your discretionary income. When you're unemployed or underemployed, payments can be as low as $0 and can vary from year to year. A 20 or 25 year repayment period is available with income-driven plans. You must pay taxes on any forgiven balance at the end of that term.

To determine what you'll owe on each repayment plan, use the Loan Simulator provided by the Education Department. As a result, you will likely have to pay more interest overall if you choose an option that decreases your monthly payments.

How to enroll in these plans: Get started with Chipper in order to enroll in income-driven repayment. Choose the plan that suits your needs or choose the lowest payment when you apply. If you're married filing jointly, you might want to examine your options since taking the lowest payment is best in most cases.

If you qualify for student loan forgiveness

Best repayment option: income-driven repayment.

Government and certain nonprofit employees can qualify for Public Service Loan Forgiveness. Upon making 120 qualifying payments, the remaining balance on your loan may be forgiven tax-free.

For PSLF to apply, standard repayment plans or income-driven repayment plans must be used. An income-driven plan requires that you make the majority of the 120 monthly payments. Under the standard repayment plan, the loan is paid off before you are eligible for forgiveness.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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