What should you know about student loan repayment options (income-driven plans, forgiveness)?

• A. Options include income-driven repayment plans, deferment, forbearance; forgiveness programs exist for certain public service roles; eligibility varies.
• B. There are no forgiveness programs.
• C. All student loans must be repaid in 10 years with fixed payment.
• D. Forgiveness programs are guaranteed after 10 years.

Answer: (A)

Student loan repayment isn’t one-size-fits-all. You should know there are several paths you can take based on your income and career, including plans that adjust monthly payments to your earnings, options to pause or reduce payments, and programs that can forgive all or part of a loan after meeting certain requirements. Income-driven repayment plans lower monthly bills by tying them to your discretionary income and family size, and they can extend the repayment period, potentially leading to forgiveness of any remaining balance after many years if you qualify. Deferment and forbearance let you pause or reduce payments temporarily, though interest may accrue differently depending on the situation. Forgiveness programs do exist for certain public service roles and other specific paths, but eligibility varies and isn’t universal. So the best choice reflects that mix of options and the fact that eligibility for forgiveness is not the same for everyone.