Definition of Repayment

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TeachMeFinance.com - explain Repayment



Repayment -- A loan is borrowed money that must be repaid. There are often different repayment plans. For example, for student loans in the United States, borrowers have a choice of repayment plans if they received a FFEL or a Direct Loan. However, Federal Perkins Loans don't have repayment plan choices; borrowers generally have up to 10 years to repay. The monthly payment will depend on the size of the debt and the length of the repayment period.



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