Question

Opinions on graduated payments plans for student loans? For both of mine with the standard payment plans I would be paying about $520 a month for 10 years (I plan on paying off sooner) With graduated it would be $350 for the first two years. And it goes up from there every two years. Seeing that if we don’t get it paid off it would eventually be a minimum payment of $777 makes me nervous. But we plan on being debt free in about 4 years so the highest it would be if we stick to that is about $428. Opinions?  

Answer 1

I am on the income based repayment plan. I went from paying approximately $300/month the last two years to an increase of $465/month. If you can plan ahead for the HUGE increase that’s ok. However, I think the standard would be better if you would like to have a more consistent payment amount.  

Comments

@zoophyte do you know if you can change it later on?