Can You Change Your Student Loan Repayment Plan?

As you’re paying off your student loan, you may find that your current repayment plan isn’t working well. It’s understandable and the reason why many loans offer alternate payment plans.

So, can you change your student loan repayment plan? The good news is that most lenders offer them, and you only need to make contact to learn the different options available.

Changing Your Repayment Plan

For most people, changing their plan means paying less each month, though protracting the loan period. It also means that while you’ll pay lower, there will be more interest to pay over its lifespan. You’ll pay more because of it, but there might not be an option available right now if you cannot sustain your current plan.

Repayment is always an option to avoid defaulting or taking a hit on your credit score. If you’ve decided to go on this path, you’ll need to:

Check the different plans available through the Federal Student Aid website. They have a loan simulator that can help you forecast your payments.
Contact your loan servicer. You do not need to go to another entity to get a repayment plan.
Apply and submit the requirements.

Make sure to check the new payment due dates listed on the plan. You may need to contact your lender once in a while to confirm if there’s been any change.

Types of Repayment Plans

There are several types of repayment plans, all of them have distinct advantages. It’s best to use the Student Aid loan simulator before finalizing your decision.

Income-Contingent Repayment Plan (ICR)

ICR is an option for those looking into student loan forgiveness. You’ll pay 20 percent of discretionary income or fixed payment for 12 years, depending on your income.

Standard Repayment Plan

You’ll pay higher each month but less over time compared to other repayment plans. In this plan, you’ll pay a fixed amount each month until the loan pays off within ten years.

Graduated Repayment Plan

It works similar to the standard plan in that you’ll complete payments after ten years. The difference is that it first starts with a low amount and increases over time.

Pay As You Earn (PAYE)

Those who borrowed after Oct 1, 2008, and have received a Direct Loan disbursement beyond Oct 1, 2011 are eligible. You’ll pay 10 percent of discretionary income, not exceeding the standard plan.

Income-Based Repayment (IBR)

You can only get this if you have a high debt compared to your income. You’ll pay 10-15 percent of discretionary income, not exceeding the standard plan.

Extended Repayment Plan

You must have more than $30,000 in loans. You’ll extend its payment period within 25 years, and you set it either at fixed or graduated payments.

Revised Pay As You Earn (REPAYE)

It works like PAYE, but each year the plan recalculates depending on your income and family size.

Income Sensitive Repayment

The loan extends to 15 years from 10. Only those under FFEL Program loans can qualify.

Compare Carefully

You have some time to check if a payment plan works best for you before committing to it. Check each carefully and make sure you’re getting into repayment with the benefit you need.

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.