April is National Financial Literacy month- a month devoted to helping all Americans learn more about healthy financial habits. At University of Phoenix we are committed to responsible student loan borrowing and that is why our focus for this month will be on student loans and developing healthy habits to manage student loans.
You may not be in repayment on your student loans yet, but that doesn’t mean you should not pay attention to them. Besides knowing how much you owe and what else you plan to borrow, it’s also important to know what your future monthly payment will be.
The first thing you should do is figure out what you can afford as a payment on a monthly basis. Students typically start out in Standard Plan which is fixed payment amount each month and up to a 10- year term. The graduated repayment plan also has a 10-year term yet the payments start out lower and slowly increase every two years. The extended plan typically has a lower payment than the standard plan with up to a 25-year term. There are also income-driven plans such as the income based, income contingent, and Pay as You Earn repayment plans. These plans are based on adjusted gross income, family size and total amount of student loans. Contact your loan servicer to provide more detailed information such as what plan you are currently in, and which of the plans listed might work for your budget.
This article has great summary information about the different plans. You will need to be logged into eCampus to access the article.