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Types of Loan Repayment Plans

Loan repayment plans vary widely, but most can be categorized into a few main types:

• Standard Repayment Plans: These involve fixed monthly payments over a set period, typically 10 years for student loans. They are straightforward but may not be the most affordable option for everyone.
• Graduated Repayment Plans: Payments start lower and gradually increase, usually every two years, making them suitable for borrowers expecting their income to rise over time.
• Income-Driven Repayment Plans: These adjust your monthly payments based on your income and family size, offering flexibility for those with fluctuating earnings.
• Extended Repayment Plans: Allow you to extend the repayment period up to 25 years, reducing monthly payments but increasing the total interest paid over time.