| Many students normally apply for loans when they | | | | types of federal student loan consolidation. |
| want to join college to help them cater for the | | | | There is the standard student loan consolidation |
| various expenses. These loans have seen many | | | | where the loan period is ten years and the monthly |
| students start and complete their studies in a stable | | | | payment is fixed. It is suitable if you can afford to |
| environment. When you graduate it is easy to | | | | pay a fixed amount every month. The extended |
| become overwhelmed by your student debt since | | | | payment plan is similar to the standard student one |
| that is when you start making payments. In order for | | | | except that it has a longer repayment period of |
| you to make your repayments more manageable | | | | fifteen to thirty years. This depends on the amount |
| then you can look at the student loan consolidation | | | | of the student loan. Then there is the graduated |
| option. There are two main types of student loans, | | | | payment plan that can work for you if you are still in |
| federal and private. If you get a federal student loan | | | | school and can only mange to repay once you have |
| there are many benefits to consolidating your loan so | | | | graduated and started working. The monthly |
| that you can manage your debts easily. | | | | payments normally start low and steadily increase |
| When you go for federal student loan consolidation | | | | every two years. This is because the student |
| you are offered a lower interest rate which makes | | | | continues to work, their salary increases accordingly |
| the repayment process easier. You are also dealing | | | | and they may be able to pay a larger amount. |
| with one loan instead of multiple ones. This is helpful | | | | The income contingent plan is based on the student |
| as you will be able to keep track of the payments | | | | income over a period of years. It is also based on |
| made since you are paying on a specific date instead | | | | the family's annual gross income, other loan amounts |
| of keeping track of multiple dates. There are various | | | | owed, other assets, mortgages etc. |