| Students across the country are jumping
on the government student loan consolidation
bandwagon. And for good reason!
Whether you are still in school, a graduate,
unemployed or comfortably employed you
can save thousands through a government
student loan consolidation by locking
in record low interest rates before
they go up.
If you need to reduce your monthly student
loan payments by extending the amount
of time you have to pay your debt, a
government student loan consolidation
may be the solution for you.
If your loans are in default you may
still reap the benefits of a government
student loan consolidation. Benefits
include protecting your credit rating,
saving money by locking in lower interest
rates or lower monthly payments.
On the other hand, a government student
loan consolidation may not be the
answer for you if you're nearing the
end of your repayment term. There's
not a lot of 'cents' in spending your
valuable time rearranging your loan
portfolio, especially if it means extending
the amount of time you have to pay off
your debt. If you can manage your existing
monthly payments stick with it because
you will save money over the long term.
If you have more than one student loan,
a government student loan consolidation
will allow you to combine all of them
into one monthly payment while locking
in a low interest rate. Ultimately,
your debts will be easier to manage.
To help make the repayment process easier
and more attractive, there are four
government student loan consolidation
plans for you to choose from.
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.
Take the time to compare the cost of
repaying your unconsolidated student
loans against the cost of paying a government
student loan consolidation.
It's in your best interest to explore
your government student loan consolidation
options. Consult https://loanconsolidation.ed.gov
and participating lenders to discover
if government student loan consolidation
is the right choice for you. If you
decide consolidating your student loans
is in your best interest, taking the
time to compare what participating lenders
offer could save you lots of money.
|
