Which of the following repayment plans is acceptable for student loan debt according to NACA guidelines?

Under NACA guidelines, both the Standard Plan and Income-Based Repayment Plan are recognized as acceptable repayment plans for student loan debt. The Standard Plan typically involves fixed monthly payments over a 10-year term, making it straightforward for assessing the borrower's ability to repay. The Income-Based Repayment Plan adjusts monthly payments according to the borrower's income and family size, which can provide relief if the borrower is facing financial difficulties.

While the Graduated Plan is a common option that starts with lower payments that gradually increase, it may not be as consistent in reflecting the borrower's current financial situation since it assumes an increase in income over time. Hence, it may not align with NACA's criteria for evaluating a borrower's capacity to manage their debt effectively. This is why the combination of the Standard Plan and Income-Based Repayment Plan is deemed preferable, as they both ensure stable repayment approaches adaptable to different financial circumstances.