Let's say you graduate from school and you are unemployed or take a low-paying job. What are your debt

repayment options if you have federal student loans?

A. Salary-Based Forgiveness

B. Student Loan Cancellation

C. Income-Based Repayment

x

D. Student Loan Default

The debt repayment option is income-Based Repayment (C)

Explanation:

income-based repayment: if you are under employed or unemployed you can fall into this option of repaying your federal student loan. income-based forgiveness is a type of loan repayment plan with loan forgiveness that is income-driven. in the sense that it reconsiders the monthly repayment i. e (lowering the monthly amount been paid for graduates having difficulty paying off loans within the standard 10 years time). made by the student because of the students low income, with the possibility of the remaining loan been forgiven by the government. the disadvantage of this is interest accumulation because loan repayment period will be stretched more than the standard 10 years period of student loan repayment.