Basics of Paying Back Student Loans

Basics of Paying Back Student Loans

Paying back student loans is not always easy, and many people have questions about their options. There are a variety of student loan repayment options available. Being aware of these options can help you select the best way to pay back your student loans that fits your current financial situation. However, if you are leaning towards bankruptcy, you may find relief by asking a Chattanooga bankruptcy lawyer for guidance.


After you graduate college, your student loans enter what is called the grace period. When it comes to student loan repayments, most grace periods last up to six months. However, this can vary depending on the types of student loans you have.

Be sure to check with your loan servicer to find out when you will be required to start paying back your student loans. Mark this date on your calendar and set reminders for yourself ahead of time. The last thing you want to do is to not be prepared for the first payments.

Do not panic if you feel like you will not be able to make those first payments by the first payment date. There are multiple student loan repayment options. Once you are ready to make student loan payments, you can choose between making one-time payments online or setting up auto-pay.

Some loan service companies also have phone apps you can use to easily track your student loan payment progress. You can make payments through the app itself. Others prefer to call or mail the student loan servicer to make their payment.


When it comes to student loan payment options, many people wonder how much they have to pay each month. This varies based on the loan amount, type of loan, and repayment length. A standard 10-year repayment plan means you pay less in interest overall, but this also means higher monthly payments.

Those who cannot afford the monthly payments for a 10-year plan can look into income-driven repayment plans and public service loan forgiveness programs. Income-driven plans determine your monthly payments based on your monthly income. Some people may not have to make any payment for months when their income dips below a certain amount.

Other types of student loan repayment plans include extended repayment, graduated repayment, and income-contingent repayment plan. An extended repayment plan allows you up to 30 years to pay back the loan in full. This means lower monthly payments. A graduated repayment plan starts with lower payments, gives borrowers 12 to 30 years, and increases monthly payments every two years.

Income-contingent repayment plans change monthly payments based on income each year. Once 25 years of payments have passed, the rest of the loan is discharged.


Going through bankruptcy alone can be daunting and leaves many people with questions. You can contact us at Tom Bible Law by dialing (423) 690-7712 for a consultation about bankruptcy. Our legal team of Tennessee bankruptcy attorneys can help you escape your financial situation through bankruptcy. We serve clients throughout the Tennessee cities of Chattanooga and Tullahoma.

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