Do you need to extend your federal student loan repayment term?Extending your debt repayment term will lower your monthly payment rates and possibly your interest rate making repayment easier and more affordable. This will also let you have extra funds for other necessities: rent, bills, food, etc.What repayment options are there to extend your debt repayment term?Extended Repayment PlanThis plan can extend your repayment period up to 25 years and can choose to repay monthly on a fixed amount or graduated which means the amount you pay gradually increases as your income increases. A requirement is that you must owe $30000 or more in federal college loans.Income-contingent Repayment PlanThis is available for borrowers who have Direct and PLUS loans. Your monthly repayment dues will be based on:• Income per year
• Your spouse’s income (if married)
• The size of your family
• The total amount of your college debtsUnder this plan, you will be given 25 years to pay and if after this period, you haven’t been able to repay all your debts, the remaining amount will be forgiven. The forgiven amount will be considered income received so you will have to pay for income tax.Income-based Repayment PlanYour monthly payment dues will be based on your income during a period of financial difficulty. This plan may exceed 10 years to repay and if you meet certain requirements over a certain period of time your outstanding balance may be canceled.Debt ConsolidationA lit of borrowers resort to consolidation as a means to extend federal student loan repayment. Repayment period may extend up to 30 years and it lowers your monthly payment dues. If you consolidate when interest rates are low, you can lock-in on this lower rate which will go unchanging until your college debts are all cleared.