There are few different types of loans and programs
available, you will probably want to become familiar
with the various options.
Standard Plan: The standard repayment plan offers
a fixed-rate plan with monthly payments of at least
$50 for up to ten years. Borrowers pay less interest
under this plan because the repayment period is shorter.
Extended Payment Plan: The difference between this
plan and a standard plan is monthly payments are extended
over a period of 12-30 years. If you have a high debt
load this may help you reduce your monthly payments
but the longer you take to clear the loan, the more
interests you will pay.
Graduated Payment Plan: Under this plan monthly payments
start out low and increase approximately every two
years. The repayment period can be from 12-30 years
depending on your debt load.
Income Contingent Repayment (ICR) Plan: Your monthly
payments via this plan are based on your income, family
size and loan amount.
If you are reasonably close to paying off your loans
and you can afford the payments government student
loan consolidation is probably not a good option.
Don't refinance if you are near
the end of the term for your student loan. Don't refinance
if your just saving a few dollars a month - the additional
time you are financing will cost you more in the long
run...CONTINUE
Article Source: http://EzineArticles.com/?expert=Tim_Grimsley
|