Anyone know the time length you have to repay subsizided student loans?
Question:i know that there is a 6 month grace period after graduation, but what is the time frame for repayment? 15, 20 years?
To answer your question accurately there is one thing that I need to clarify, are these loans Federal Student Loans or Private Student Loans?
I assume since you mentioned Subsidized in your question these are Federal Student Loans. Federal Stafford Loans, whether they are Subsidized or Unsubsidized, are automatically put into a 10 year repayment term if you do not consolidate your Federal Student Loans.
There is a program that the Federal Government developed in case a 10 year repayment term is not feasible. The FFELP Consolidation Loan Program was developed by the Federal Government to help student and parents lower their monthly payments on their Federal Student Loans. The term of repayment is determined by your particular situation, but does extend the repayment period beyond 10 years.
For more information on Repayment Periods of the FFELP Consolidation Loan Program as well as more information about this program please visit the source below.
Depends on how much student loan debt you have.
You will probably consolidate your loans as each semester is considered a loan and then there is the interest.
So if you go to school for 4 years you will have 8 loans and 8 interest payments. So you will most likely consolidate at a low interest rate.
The bank that consolidates will set the payment rate, so it will vary.
Also if you go back to school ... say for your Masters ... they can suspend payment until you are done and then you will continue payments.
When I consolidated my loans they went from 10 to 25 years. I borrowed about $40k.
10 years is the standard repayment. If you consolidated your loans then it might be a longer. Remember that a longer repayment lowers your monthly cost, but you will a LOT more in interest.
Say you leave school with 20,000 in loans at 6.8 over 10 years.
Monthly Loan Payment: $230.16
Number of Payments: 120
Cumulative Payments: $27,619.31
Total Interest Paid: $7,619.31
Now let's say EVERYTHING stays the same except you pay the loan over 25 years instead of 10.
Monthly Loan Payment: $138.81
Number of Payments: 301
Cumulative Payments: $41,646.49
Total Interest Paid: $21,646.49
So over 25 years you'd pay 100 a month less, but since you have 15 "extra years" to pay, you pay almost $14,000 MORE in interest. Remember, the loan was only 20,000 to begin with.
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