| "I can't afford to make my monthly repayments on | | | | Plan |
| my federal student loans as my salary is not | | | | This plan often starts off with repaying the interest |
| sufficient for me to do so." | | | | only. These payments will gradually increase until the |
| Can this problem be solved? | | | | loan is fully paid. This plan costs more in interest |
| The answer is YES. You can take the proactive step | | | | payments when it is compared with the first plan. It |
| to consolidate all your federal student loans. The | | | | is the most ideal plan for the fresh graduates as they |
| method is very beneficial especially during economy | | | | only need to make little payment when they have |
| downturn where the interest rates are relatively | | | | just started working with low salary.o Extended |
| lower. Federal student loan consolidation is designed | | | | Repayment Plan |
| to extend the period of repayment so that your | | | | This plan offers a longer repayment period than the |
| monthly payment is much lower than what you are | | | | standard plan. The period can be extended up to 30 |
| paying currently. Based on the calculation, some | | | | years but the interest rate is higher.o Contingent |
| people are able to lower their monthly payment by | | | | Repayment Plan |
| as much as 50% after consolidating the loan. | | | | Under this plan, the amount of repayment is |
| There are basically 4 types of federal government | | | | determined by your income, your total outstanding |
| student loan consolidation programs. Let's take a | | | | balances and the size of your family. The repayment |
| closer look at them one by one.o Standard | | | | period can be up to 25 years. |
| Repayment Plan | | | | Don't worry when your current income is not |
| This plan offers the fixed monthly payments for a | | | | sufficient to pay off your study loans. Go for federal |
| maximum duration of 10 years but it requires the | | | | student loan consolidation. It will assist to ease your |
| highest monthly payment.o Graduated Repayment | | | | financial burden. |