Standard Repayment

Standard Student Loan Repayment OptionsThe Standard Repayment Plan for federal student loans is currently the most popular plan offered because it is the plan a borrower is automatically placed in if they do not select one of the other plans available. This program will work for most student loan borrowers due to several different types of federal student loans being eligible. This plan offers a fixed monthly payment of at least $50.00 per month for up to 10 years. This plan can save borrowers money because this plan offers the shortest repayment term so the borrowers pay less interest over that term. The main drawback to this plan is that your monthly payment will be higher than those made through an income driven repayment plan.

There are many different repayment programs available for federal student loan debt. Currently the most common plan is the Standard Repayment Plan due to the fact that it is the default program for borrowers who do not select one of the other plans available. There are several different types of federal student loans that are eligible for this program, (Direct Subsidized, Direct Unsubsidized, Direct Plus, Direct Consolidation, Subsidized Federal Stafford, Unsubsidized Federal Stafford, FFEL, & FFEL Consolidation Loans) so this program will work for most student loan borrowers.

This plan offers a fixed monthly payment of at least $50.00 per month (the monthly payment will be determined by the amount a borrower owes), and a term of 10 years (for Direct & FFEL Consolidated Loans the term can range from 10 to 30 years based on borrowers total educational loan indebtedness). With the Standard Repayment Plan the borrowers monthly payment will most likely be higher than those made through the other repayment plans available however, with this plan the borrower saves money by paying back less interest due to the shorter repayment term.  This program is ideal for someone who can afford the fixed monthly payment since they will see the most savings and shortest term.

We want to assure you that our primary objective is to help you understand the options available to you in repaying your student loan debt. Our organization, which is a nonprofit Consumer Credit Counseling Organization has over twenty years of experience helping individuals live debt free and understand their complete financial picture. The consultation is free and the help and guidance we’ve provided individuals throughout the years has been invaluable. We encourage you to learn more about our organization by visiting Debt Reduction Services or calling us toll free at 1-877-688-3328. Our certified student loan counselors are ready to help you today!