Does extended repayment plan good for me?
Updated: Jan 21, 2019
Extended repayment plan can help in prolonging the repayment period and lowering the monthly payment, but even than there are ways to reduce your debt costs.
R. from New York, $36K in student loans debt
R. was looking to lower his monthly payment to cope with the high living costs of New York. In his case, an income driven repayment plan wasn't suitable. Since all loans were direct Subsidized/Unsubsidized loans, it was possible to change his repayment plan to extended fixed repayment plan, allowing R. to lower his monthly payments, without the need of consolidation. Since his loan interest rates varies from 3.4% up to 7.6%, whenever R. has some extra cash, he can put it towards the highest interest loan, and by doing so, he's able to cut the cost of the costliest loans.
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