| You can make use of federal student loan | | | | years. |
| consolidation at any point of your education, when in | | | | Standard Student Loan Consolidation |
| school, university, or even when starting out on your | | | | This type of loan payment plan extends up to a |
| career. The US government allows U.S. students to | | | | maximum period of 10 years where the student |
| consolidate their federal student loans, enabling them | | | | needs to pay a monthly amount that remains fixed |
| to ease their financial worries. With the help of | | | | throughout. This is perfect for students who are |
| federal student loan consolidation you can significantly | | | | comfortable paying a fixed amount every month. |
| decrease the amount of your monthly installments | | | | Extended Payment Plan |
| and also gain from an extended repayment period. It | | | | This payment plan is very much like the standard |
| is always more convenient to manage one loan | | | | student loan consolidation plan leaving out the |
| program instead of multiple. | | | | repayment period that could extend anywhere |
| Federal student loan consolidation can fall in any of | | | | between 15 and 30 years. The period of repayment |
| the following four categories: | | | | largely depends on the nature of the loan taken by |
| Income Contingent Payment Plan | | | | the student. |
| This type of federal student loan consolidation is | | | | Most students opt for the extended payment plan or |
| complex in nature and depends on the student's | | | | the graduated payment plan as these loan plans |
| income in a given period of time. It also looks into the | | | | provide them with greater ease and flexibility. Usually |
| family's yearly earnings, any other outstanding loan | | | | when a student graduates and begins their new |
| amounts to be paid, mortgages, and assets, if any. | | | | career, it is easier if the loan amount to be paid |
| Graduated Payment Plan | | | | every month is as low as possible. Most students |
| This type of federal student loan consolidation plan is | | | | prefer to have an extended repayment period as it |
| ideal for students who are still in school and can only | | | | allows them to comfortably pay off the loan without |
| start the loan repayment procedure once they have | | | | struggling financially each month. As a student begins |
| graduated and found a job. The repayment period | | | | working, he/she might want to apply for other loans, |
| can extend up to 30 years. The installment amount is | | | | such as a car loans or a mortgage, and when the |
| generally minimal in the beginning and gradually | | | | payment amount for the consolidated federal student |
| increases once in every two years. The idea is to | | | | loan is reasonably low, it makes it easier for the |
| slowly increase the interest rate to help the student | | | | student to handle all of this monthly debt. |
| pay back on time as his/her salary increases over the | | | | |