you are successful in your student loan consolidation
application, it will help you to reduce the student
loan payment amount each month and/or allows you more
time to pay off your student loans.
If you currently have several student loans, it is
easier if you use federal student loan consolidation
to consolidate them into one loan payment thus making
it easier to manage.
The Four Types Of Federal Student Loan Consolidation
The U.S government in a bid to attract more students
to take up their student consolidation loans have
come up with four plans to suit the different needs
of students.
They are:
1) Standard Student Loan Consolidation
The maximum student loan period is 10 years and the
payment amount per month is fixed. This type of plan
is suitable for students who can afford to pay a fixed
amount per month. The interest rate would not be a
big factor in huge student consolidation loans
2) Extended Payment Plan
This type of plan is similar to standard student
loan consolidation except it has a longer repayment
period of between 15 to 30 years. The repayment period
is dependent on the student loan amount.
3) Graduated Payment Plan
This type of plan is suitable for students still
schooling and can only repay the student loan when
they have a job after they graduated. The payment
period is between 15 to 30 years. The payment amount
per month usually starts low and increase steadily
every 2 years. The intent is the as the student has
worked for a longer period of time, their salary will
increase accordingly and thus able to pay a larger
repayment student loan.
4) Income Contingent Payment Plan
This type of plan is complicated and is based on
the student’s income level over a period of
years. It is also based on the family’s annual
gross income, other loan amounts owed, other assets,
mortgages etc.
Most student usually choose graduated payment plan
or the extended payment plan for their federal student
loan consolidation.
Ricky Lim works in a finance
company specialising in direct student loan consolidation.
Visit his site for student loan consolidation rates
and get a free student loan consolidation quote
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