| College students and parents who plan to apply for | | | | duration. This program is usually the default program |
| college loans have to consider how much debt they | | | | unless the student chooses a different repayment |
| can shoulder and how soon they have to repay the | | | | option. |
| loans to save money. Some experts suggest that | | | | Graduated Repayment Plan |
| students should go for loan repayment programs that | | | | This repayment program allows students to pay a |
| would not ask for more than 15 percent of their | | | | smaller amount during the beginning of the repayment |
| eventual starting monthly income. For parents, experts | | | | period. The monthly payment amount gradually |
| suggest that they should limit their total debt | | | | increases along with interest, usually every two years. |
| repayments to about 40 percent of their gross income. | | | | This program is better for people who are expecting a |
| College loan corporations provide loan consultants and | | | | steady increase of income. |
| online college loan calculators to help students weigh | | | | Income Sensitive Repayment Plan |
| their options. College loan repayment usually starts 6 | | | | This repayment program is almost the same as |
| months after graduation, leaving school, or when a | | | | graduated repayment plan. The main similarity is that |
| student drops below half-time enrollment. The loan | | | | monthly payments are lower at the start of |
| provider will notify the student when repayment is | | | | repayment and gradually increases over time. The |
| about to start. | | | | difference between the two repayment plans is that |
| Standard Repayment Plan | | | | an income sensitive repayment plan, as the name |
| This repayment program allows students to repay | | | | implies, would base monthly payment on a percentage |
| their loans over a 10-year period. Most of the time, | | | | of the student?s monthly income. |
| monthly payments remain unchanged over the | | | | |