How does student loan repayment work and what are my options?
Federal student loans offer several repayment plans. Standard Repayment: fixed payment over 10 years — highest monthly payment, lowest total interest. Income-Driven Repayment (IDR): payments are set as a percentage of your discretionary income (5–10%), adjusting as income changes, with any remaining balance forgiven after 20–25 years. Public Service Loan Forgiveness (PSLF): forgiveness after 10 years of payments while working for a qualifying government or non-profit employer. Private loans offer fewer options — refinancing to a lower interest rate is often the best lever. The avalanche method (highest rate first) minimizes total interest; the snowball method (smallest balance first) builds motivation. Model multiple payoff scenarios at wealthserene.com/tools/college-planner.