Student Loan Repayment Programs

To make highly trained personnel, federal student loans and private student loans are available. This high scale availability is becoming an increasingly alarming obstacle for the U.S government. Every 8 out of 10 students say that loan repayment programs are effective recruitment tool. So, the increasing size of student loans is becoming a threat for U.S government to recruit and retain top people. So, there are several options for repayment of student loans in consolidation.

Option 1: Immediate Repayment

It allows the student to do maximum savings during the life-span of loan
Student can pay principal and interest on a fixed monthly basis starting in about 45 days after the disbursement of loans.

Option 2: Interest-Only Repayment

It gives margin to students for low payment during their academic period to avoid or reduce overall debt.
Students can delay the principal and can pay only the interest amount during school period up to four consecutive years, provided student is enrolled in the program. Interest payments can be given after 45 days of disbursement approximately. Repayment for the principal begins after 45 days of graduation or withdrawal from school approximately.



Option 3: Deferred Principal and Interest Repayment

It allows the student of deferring the repayment.
Students will not have to make any payments during their school or academic period for up to four consecutive years (can be up to five depending on the enrollment period). Repayment of accumulated principal and interest starts approximately 180 days after the graduation or withdrawal from program. Interests on deferred loans are capitalized quarterly and at the starting of repayment.



Except these 3 options, there are other Educational Loan Repayment Programs as well. Some are given as an example here, while similarly, other Loan Repayment Programs can be taken benefit from:

Nursing Education Loan Repayment Program:


This competitive and effective program can repay 60 percent of the qualifying loan balance for registered nurses selected for this funding in exchange for 2 years of service at a shortage facility. It can be given for a third year as well to receive extra 25 percent of the qualifying loan balance.

Federal Teacher Loan Forgiveness Program:


This program intended to encourage the students for taking teaching as a profession or career. Student loan forgiveness of up to $5000 can be given to the students who serve in primary or secondary teaching institutes which provide education to low-income families and who meet other qualifications. While in some cases up to $17,500 can be forgiven for principal and interest of their Direct Loan and/or Federal Family Education Loan Program loans and certain other consolidation loans.

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