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Changing Student Loan Repayment Plan

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RA26
New Contributor

Changing Student Loan Repayment Plan

I'm trying to swtich from a standard repayment plan to a graduated replayment plan. For a bunch of little reasons. 

 

My question is if I change the repayment plan does this close out my old loans and open new tradelines? Or does it just change the payment amount with in the current tradeline? I hadn't thought about it until after I already applied for the change over.  

 

 

 

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Current Score: 638
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SCF
Valued Contributor

Re: Changing Student Loan Repayment Plan

No, changing repayment plans does not close your loans and open new tradelines under the new terms.  You aren't refinancing your loan, you're just making a new agreement with your lender for the payment amount.

Message 2 of 4
RA26
New Contributor

Re: Changing Student Loan Repayment Plan

Ok, thanks. 

 

I hoped as much. 

Starting Score: 633
Current Score: 638
Goal Score: 700


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Message 3 of 4
midwestgirl44
Contributor

Re: Changing Student Loan Repayment Plan

If your circumstances change later, after you're in a graduated repayment plan you can always change it to another repayment plan (standard, income based, etc.) to avoid a big jump in your loan monthly payment.
Message 4 of 4
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