There are over 15 different repayment options to choose from, which gets overwhelming when researching on your own. We boil it down to two strategies and then show you what your own case looks like inside each.
Traditional repayment aims to pay the balance off in full over a set term. Payments are higher, the balance goes to zero, and there is no forgiveness event and no tax consequence at the end. It tends to fit people whose income comfortably exceeds their debt.
Non-traditional repayment uses income-driven plans, where the monthly payment is calculated from income and family size rather than the balance. Any remaining balance may be forgiven after the required repayment period. Payments are usually lower month to month, but the total cost — and possible tax on forgiveness — has to be projected.
The lowest payment is not automatically the cheapest strategy, and the fastest payoff is not automatically the smartest use of income. The comparison that matters is short-term cost and long-term cost side by side.
Your consultation maps your individual case across the repayment options you qualify for, so you can see both numbers before choosing rather than after.
FAQ
There are over 15 different federal repayment options. Rather than compare all of them one by one, we group them into traditional and non-traditional strategies and price your case in each.
Not necessarily. A lower payment can mean more interest and a longer term, or it can free income for other goals. The right answer depends on income, employer and long-term plans.
Educational information only. Not legal, tax or individualized financial advice.
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Illustrative client example. Individual results and circumstances vary.
