Loan Repayment Plans

Income-Based Repayment (IBR):

Plan that sets  your payment amounts based on your income and family size and caps your payments  at 15% of your discretionary income if you are eligible. After 25 years (10 if you work in public service) and 300  eligible payments,  any remaining balance may be forgiven but would be taxable.

Income-Contingent Repayment (ICR):

Similar to IBR, but caps your payments  at 20% of your discretionary income  and is available for Direct loan borrowers  only. After 25 years  (10 if you work in public service) and 300 eligible payments,  any remaining balance may be forgiven but would be taxable.

Pay As You Earn Repayment:

Another plan similar to IBR that allows you to make payments of no more than 10% of your discretionary income if you  qualify. After 20 years (10 if you work in public service), any remaining outstanding balance may be forgiven but would be taxable. Know more info Pay Off Student Loans or Mortgage

Types of Loans:

1. Consolidation loans: Loans that combine one or more pre-existing loans into one new loan and (generally) a longer repayment term.

2.  Health Professions Student Loans (HPSLs): Loans for healthcare  professionals  specializing in many areas other than primary care or nursing. HPSLs are part of Title VII of the Public Health Service Act.

3.  Institutional loans: Non-federal loans provided directly by your school.

4.  Nursing Student Loans (NSLs): Loans for nursing professionals  looking to supplement their financial aid. NSLs are part of Title VIII of the Public Health Service Act.

5.  Stafford loans: The most common federal student  loans. Stafford loans can be either subsidized or unsubsidized.

6.  Supplemental Loans for Students (SLS): Federal loans for financially independent  students.  This program was eliminated  in 1994 with the creation  of unsubsidized Stafford loans.

7.  Perkins loans: Federal loans that schools award to their students  who have exceptional financial need.

8. PLUS loans: Loans borrowed by parents of eligible dependent students (Parent PLUS loans)  or by graduate students themselves (Grad PLUS loans) typically after exhausting their Stafford loan awards..

9.  Private student loans: Non-federal loans provided by private lenders that can help you pay for school, if you don’t have enough other financial aid.