When to consider student loan consolidation
It is best to consider student loan consolidation at the start of the repayment process. If you consolidate at the beginning you avoid
accumulating interest and more of your payments will be applied to the principal. If possible, make extra payments. The longer the
repayment period takes, the more you will pay in interest.
Student loan consolidation repayment plans
There are four common types of repayment plans that students and parents can choose from. They are as follows:
Standard Repayment Plan: This plan includes a fixed monthly payment for up to, but no longer than 10 years.
Graduated Repayment Plan: This plan allows for lower monthly payments at the beginning of the repayment process and then after, usually 2-5 years, the payments will increase due to the likelihood that salary will also increase. This plan requires that the loan be paid over ten years.
Extended Repayment Plan: This plan includes a fixed monthly payment that can be paid over 12 to 30 years. The length of this repayment process depends on the amount of money borrowed.
Income Contingent Repayment Plan: This plan includes monthly payments that are determined by the borrower's income, family size, and the amount needed to be repaid. This plan can paid over for up to 25 years.
We hope the above information helps you understand how Student loan consolidation