Be Responsible Glossary Within six months of graduating, leaving school or attending less than half-time, you will be confronted with a hefty bill that needs to be paid. It s important that you take time to sort through all of the options that are available to you so you can create a payment schedule that fits your lifestyle now and in the future. Repayment Options Stafford loans have a variable interest rate, which means the rate can change each year. Typically, any rate change will be made every July 1. Keep this in mind when deciding what payment plan to select.
Most lenders offer several repayment options, and each has pros and cons.
When selecting a repayment method, it s important to consider what your starting salary and living expenses will be when you graduate. Below you will find brief descriptions of the standard types of payment plans. You pay the same amount throughout the entire pay-back period. Allows you to pay a lower initial payment that increases in predetermined stages during the pay-back period. Fluctuates with your level of income.