if there’s anything left over after two and a half decades, gets forgiven.
You may have to pay income tax if there’s an amount that’s forgiven. You’ll have to talk to a tax specialist about that. Of course, the government could also change the law between now and the next 25 years.
This, in a nutshell, describes the variety of loan repayment options that are available to you.
In total, there are six different repayment plans—the standard repayment plan, the graduated repayment plan, the extended repayment plan, the income-based repayment plan, the income-sensitive repayment plan, and the income-contingent repayment plan.
Certainly, one of these will be right for you to help you avoid going into delinquency or default on your federal student loans.
This article originally appeared on AskTheMoneyCoach.com.