Consolidating stafford and perkins student loans
IBR will also forgive remaining debt, if any, after 25 years of qualifying payments.
As an example, if your initial salary is ,000 with a household size of one, you can expect a maximum monthly payment of 2.91. Government will pay that interest on your Subsidized Stafford Loans for your first three years in IBR.
There is no fee to consolidate federal student loans into a Direct Consolidation Loan.
Did you graduate from college in the last ten years?
The extended repayment plan is for borrowers with federal loans totaling more than ,000.
While your debt may grow if your payments are low enough, anything you still owe after 25 years of qualifying payments will be forgiven.
Whether you consolidate or not, you’ll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose.
Let’s break down your options: The standard repayment plan requires you to pay a fixed amount each month based on your principal and interest, totaling no less than or the interest that has accrued.
Initial payments generally cover interest only for the first few years—meaning that you won’t begin beating back the principal loan until after that period.
The income-based repayment plan (IBR) bases your monthly payment on your yearly income and your loan amount, known as your debt to income ratio.