You should realize, however, that extended payments mean you will be paying a greater amount of interest over the term of the loan. You make equal monthly payments during the entire term of your loan. You can ease your monthly bills just by consolidating several eligible loans into one payment. By selecting this plan, you will reduce total interest over the term of the loans. You pay only interest during the first two years of your repayment term.
Payments then increase in year three to include both interest and principal.
Regular principal and interest payments then begin in year six. You can tie the size of your monthly payment to your income level. Your minimum payment must at least cover interest charges. This option gives some relief based on limited earnings, but guarantees that the loan will not grow larger with each passing month.