Rules for consolidating student loand

Interest accumulates fast that way, so most income-driven plans subsidize the difference between your payments and the accruing interest at certain points in repayment.

REPAYE has a more generous subsidy than other income-driven plans, paying the entire difference on subsidized loans and half the difference on unsubsidized loans for the first three years.

» MORE: How to recertify income-based repayment If income-driven repayment isn’t right for you, the federal government offers extended repayment and graduated repayment plans, which lower your payments but aren’t based on your income.

You may pay more interest under these plans, though, and neither offers loan forgiveness.

Fortunately, whether you have a Federal student loan or a privately-funded one, you almost certainly do have access to a variety of incredibly effective debt relief opportunities.

To get help paying off your student loans, first you’ll need to determine whether your loan is Federal or Private, then you should scroll to the appropriate section of the page below and review your options.

For example, let’s say you owe ,000 in subsidized loans and ,000 in unsubsidized loans, with both having 5% interest rates.

» MORE: Income-Contingent Repayment: How it works and whom it’s best for You can consolidate other federal loans, such as Perkins loans or older Federal Family Education Loan Program loans, for free at to make them eligible for REPAYE.

Weigh the pros and cons of consolidation before taking this step.

And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Our partners cannot pay us to guarantee favorable reviews of their products or services. " At Nerd Wallet, we strive to help you make financial decisions with confidence. Revised Pay As You Earn, or REPAYE, is an income-driven repayment plan that caps federal student loan payments at 10% of your discretionary income and forgives your remaining balance after 20 or 25 years of repayment.

We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.

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