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You may change jobs, which can affect your income, need to take on new expenses when you start a family, or move to an area with a higher cost of living. The repayment plan you start with may not suit you down the road. How often can I change my repayment plan? Learn More: How to Refinance Your Student Loans If that interest rate is lower than your previous one, you can save money as long as you don’t choose a longer repayment plan. Refinancing makes it possible for you to secure a new loan with a new interest rate. Student loans refinancing You also have the option to refinance federal or private student loans with a private lender, which can change your payment amount depending on the repayment term you choose.You must have a minimum of $30,000 in federal student loan debt in order to qualify. Extended Repayment Plan: With this plan, you can extend your repayment term up to 25 years.You’ll finish paying off your loans within 10 years. Graduated Repayment Plan: All federal loan borrowers are eligible to switch to this repayment plan, which has monthly payments that start lower and increase over time (usually every two years).Department of Education offers four types of IDR plans: Income-Based Repayment, Income-Contingent Repayment, Pay As You Earn, and Revised Pay As You Earn. If your income increases, but your family size does not, then your payment may go up. For example, if you welcome twin babies into your family, your payments may go down. Income-driven repayment plans: With an income-driven repayment (IDR) plan, your monthly payment will be set at the amount that’s designed to be affordable based on your income and family size.Here’s how each type of repayment plan can change your monthly payment amount: This is why it can be helpful to research all your available repayment options. Your monthly payment amount can change when you switch repayment plans. If you have your student loan payments set up on autopay, make sure the payment is on the right date in the event that your payment due date changed. Update information for automatic payments.Your new repayment plan may not start immediately, so double check when your next payment will be due and for what amount, as well as what your ongoing schedule will be once the new plan does begin. Your loan servicer will walk you through any requirements that you need to complete in order to make the switch. If you have multiple loans with more than one loan servicer, you only have to contact the servicers associated with the loans you want to change plans for. If you’re still not sure which plan is the right fit, they can discuss your options. Once you’ve researched repayment plans, contact your loan servicer to alert them of your desire to change. If you aren’t sure which plan is the right fit, you can use the Federal Student Aid Loan Simulator to see which payment plans you’re eligible for, what your monthly payment would be, and how much you’d pay in interest for each one. You’ll have a few different repayment plans to choose from, so it’s a good idea to research what each one entails. If you want to change your student loan repayment plan, follow these steps: For example, if you switch to a plan with a longer repayment term to lower your monthly payment and make it more manageable, you’ll pay more interest. How to change a student loan repayment planĬhanging your student loan repayment plan is possible, but it can result in paying more interest on your loan depending on the plan you choose.
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Here’s how to change your student loan repayment plan: While changing your repayment plan usually isn’t an option if you have private student loans, many private lenders offer a variety of repayment options you can choose from when you first take out your loans. But if your circumstances change or you want different repayment options, you can change the repayment plan you’re on at any time, for free. When it’s time to start repaying your federal student loans, you’ll automatically be enrolled in the 10-year Standard Repayment Plan. NMLS # 1681276, is referred to here as "Credible." Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Our goal is to give you the tools and confidence you need to improve your finances.