In the event that you have come across financial hardship or you are looking at options to lower your monthly payments, you may want to take a look into the Extended Student Loan Repayment: 25 Year Term program. Through this program, you are able to extend you student loans that surpass $30,000 in total and allow you to extend your loan to a 25-year long term. Continue reading to see what you may need to do in order to qualify as well as determining if this is the right option for you.
There are typically a few things that you will want to consider to see if you may be eligible for Extended Student Loan Repayment: 25 Year Term;
- You must be a student loan borrower with direct loans of more than $30,000
- You must be a student loan borrower with FFEL Loans surpassing $30,000
A good example of this would be the following, if you have $42,000 in Direct Student Loans and an additional $12,000 in FFEL Loans, only the Direct Student Loans would be eligible for the extended repayment program. Any loans under the $30,000 threshold will not qualify as eligible for this program. Consider these terms prior to applying.
Please also note that when you choose to extend your student loans to the 25-year payment plan, you will have 2 main things happen. The first thing is that you will see your monthly payments drop considerably, however on the other side of things you will end up paying a considerably higher amount of interest over the life of the loan since you extending the term.
What Loans Qualify?
The following loans qualify for Extended Student Loan Repayment: 25 Year Term. Please note that at this time, the below loans are the only ones that are currently accepted. You may want to reach out to your federal student loan servicer to see if you qualify for this program or if new loans have been posted that would be approved towards the student loan extension.
- Direct Subsidized and Unsubsidized Loans
- Subsidized and Unsubsidized Federal Stafford Loan
- All Plus Loans
For more information please reach out to your federal student loan servicer.
How to apply?
In order to apply for the Extended Student Loan Repayment: 25 Year Term, you will need to contact your federal student loan servicer. Upon making contact with them, you will need to inform them that you wish to fill out an extended repayment for or move to an extended repayment plan. This will typically require additional paperwork and other forms of documentation.