For those choosing to go back to graduate school, there are limited options especially after new legislation limiting student loans was passed this summer. With this new legislation, graduate students can take instant online payday loans or other kinds of unsubsidized loans.
The key to controlling your graduate student debt is paying back the balance as soon as you can. There are many ways to do this:
Standard repayment: A ten year payoff schedule keeps you disciplined and with the least amount of interest paid during the duration of the loan. This strategy also demands the highest monthly payment.
Graduated repayment: Payments start low when you are in school and too busy to work and study and gradually increase as the loan term advances. You will end up paying more interest than a standard repayment, and you have to account for the rising monthly payment.
Extended fixed repayment: A standard repayment schedule, only for loans exceeding $30,000. The payback period is up to 25 years, but more interest is paid over the longer period of time.
Pay as you earn: The monthly payments are calculated based on your adjust gross income annually. The payments slide up and down based on what you earn and can be as low as zero dollars. This is only applicable for certain federal direct loans, and the payments can be lower than the interest accrued, making loan term last up to 20 years.
Income contingent repayment: Similar to the pay as you earn option, only the monthly payment cannot be lower than the interest owed. The payment term can last up to 25 years and annual documentation is required.
Managing your student debt and choosing the right borrowing option is extremely important, as important as which school you choose. Be sure you are borrowing responsibly, and use the best payment options to get your advanced degree without advanced debt to go along with it when you get out of school.