ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The correct answer is: c. Income deferment plan. Based on the US Department of Education’s guidelines, income-based repayments, pay-as-you-earn plans, and income-contingent plans are all acceptable ways to repay loans.

Detailed explanation-2: -The government offers four income-driven repayment, or IDR, plans: income-based repayment, income-contingent repayment, Pay As You Earn (PAYE) and Revised Pay as You Earn (REPAYE). These options are best if your income is too low to afford the standard repayment.

Detailed explanation-3: -Standard/Level: You make the same monthly payment amount each month for 10 years. Graduated: Your monthly payments start lower and get larger over the repayment period, usually increasing every two years. This may be a good option if you need a lower payment now, but expect to make more money in the future.

Detailed explanation-4: -A Repayment Plan is when a borrower and their lender come to an agreement on how much the borrower will pay each month and how many monthly payments it will take to pay the loan off. Was this page helpful?

Detailed explanation-5: -Standard Repayment. Under this plan you will pay a fixed monthly amount for a loan term of up to 10 years. Extended Repayment. Graduated Repayment. Income-Contingent Repayment. Income-Sensitive Repayment. Income-Based Repayment.