Student loans how is it paid

For extended and graduated repayment, the following chart shows how the maximum loan term depends on the amount borrowed.

This year extended repayment plan does not require you to consolidate your loans. All Federal education loans allow prepayment without penalty. For loans that are not in default, any excess payment is applied first to interest and then to principal. In the early years of repayment, more of your payment will go to pay interest because the payments are lower than they will be later on.

Most, if not all, of that payment will be used to pay the accrued interest. And in some cases, it may not cover all of the accrued interest due. Because you have lower than normal payments, more, or all, of the payment will be used to pay accrued interest. You can make recurring student loan payments through Auto Pay , or make a one-time payment using Pay Online. Both options are easily available after you log in to your account.

Other ways to pay include our mobile app , by phone, or by mail with a check. Have a social account and have a question? Send us a message. We're here to help. You can chat with us a few ways:. You can also log in or visit our Contact Us page to contact a representative.

Great Lakes is a Servicer to Federal Student Aid You have a network of support to help you succeed with your federal student loan repayment. How Payments Are Applied. Tweet on Twitter. Share on Facebook. We automatically apply excess amounts to: Accrued interest Principal of the loan with the highest interest rate. Note: If you're in school, grace, or deferment, after outstanding interest for all loans has been paid, it will be applied to the unsubsidized loan with the highest interest rate.

What is an Account? If you have four loans of the same type, you'll have a single account with four loans and one payment. Remember, the interest rates can be different. Or, if you have four loans of two different types, you'll have two accounts with loans in each. An account can also have a single loan in it. Your Situation Show information about situation: I want to make a payment while I'm still in school, in my grace period, in a deferment, or in forbearance.

Auto Pay or Pay Online When you make the payment on mygreatlakes. Refund payments reduce what you originally borrowed. Any interest charged on the amount you pay will be reduced, and a portion of the disbursement fees may also be reduced.

Mail or Bill Payment Service It will automatically be applied as a refund to your unpaid balance unless you contact us in writing to ask that it be applied as a payment—first to accrued interest, then to principal.

Auto Pay, Pay Online, U. Mail, or Bill Payment Service Your payment will be applied in this order: To accrued interest To the principal on the unsubsidized loan with the highest interest rate. Actively scan device characteristics for identification.

Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Student loan borrowers have a variety of options when the time comes to start repaying their loans. Federal student loans offer the most flexibility, while the choices with private student loans are more limited.

The best way for you to repay will depend on the kind of loans you have, how much you owe, and where you stand financially after graduation. This guide explores your current choices. There are multiple repayment plans you may be eligible for if you have federal student loans. Here's how they compare. One note: So far, the Public Service Loan Forgiveness program has rejected the majority of applicants, so be forewarned that choosing a repayment plan that is a good option for the program doesn't guarantee that your loans will be forgiven.

The Department of Education suspended interest and monthly payments on federally held student loans through Jan. The American Rescue Plan passed by Congress and signed by President Biden in March also includes a provision that student loan forgiveness issued between Jan. The answer to this question can be different for every borrower. Your choice of plan can affect other financial decisions you make. Ready to apply? See our private student loans.

Please note the monthly payment amount is an estimate provided for information purposes only. Your loan repayment term is the number of years you have to pay it back. Federal loans generally have a standard repayment schedule of 10 years.

You'll be given a definite term for your loan when you apply. The average interest rate will be different for federal student loans and private student loans. Federal student loans have a single, fixed interest rate, which means that your loan's rate doesn't change over time.