Tell me about repaying Federal Student Loans

[daughtersrus]

My DD recently graduated from college. She has a small amount of Stafford (unsubsidized) student loans with a balance of about $14,000 with interest.

She needs to start making payments by June so we're trying to fill out the paperwork.

We're thinking that the plan she would need is the Standard Repayment Plan but we're really not sure.

If it matters, her degree is in Special Education. She has not been able to find a permanent job since graduating in Dec but had a long-term sub job for 6 weeks and was just hired today for a long-term sub job that will last until the end of the school year.

If she can get a job in a low income school, there is a "loan forgiveness" program that she may be able to qualify for.

Any advice or suggestions would be appreciated.

 

[lovepurple]

The standard repayment plan is fine if she doesn't think she'll have problem making the payments. My son is signing up for the graduated repayment plan so the required payments are initially lower but he is going to pay more than the required amount as much as he can. The idea with the graduated plan is as you advance in your career you hopefully will have higher income and then can afford higher payments. But you do end up paying more interest that way.

 

[puffkin]

That is almost exactly how much my student loans were when I graduated college. I think the standard repayment plan is perfect for her. My payments are approx. $100 a month.

 

[daughtersrus]

Thanks for the help. We were thinking that the standard plan would work for her. Right now, she's still living at home rent free but does pay for all of her other expenses (car payment, insurance, gas...) but once she has a "real" job, we plan to charge her a minimal amount of rent (she doesn't know it, but we're going to put it away for her so that when she moves out, she'll have a down payment). We just want to make sure that she'll be able to make the payments.

I know that this sounds stupid, but is there a way to find out what the interest rate is? We looked at her accounts on line and all of the paperwork that was sent and cant' seem to find it.

We're just trying to get an idea as to the approx amount that the monthly payment is going to be.

Thanks again!

 

[golfgal]

If she doesn't have a job you can defer her repayment so keep that in mind. There are also income based repayment plans that are good for people that will start out with a smaller salary but have it grow somewhat quickly (but being a teacher that isn't the case). You can change your payment plan later on if necessary--it's a lot of paperwork.

 

[yoopermom]

I picked up another certification a year and a half ago, taught a year, then was laid off. I just called, and had my loans deferred. I'm sure she'll be able to as well, in her situation. Nothing to be ashamed of, especially with the teacher job situation the way it is.

Terri