Federal Repayment Programs

The term repayment program refers to how the monthly payments are calculated for someone who is no longer in college. The term is often confused with loan cancellation and loan forgiveness programs, which I talk more about in the next chapter.
Federal repayment programs are not necessarily programs run directly by the government, but are formulas that government lenders are required to use to calculate how much you pay and when. If your funds were loaned to you indirectly through a corporate lender who was participating in a government student loan program, you’ll be sending your money to that lender. If your funds were provided under a Direct loan—which represent the smaller portion of loans made—then you’ll be sending ...

Get The Complete Idiot's Guide® To Paying for College now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.