| If you have several student loans to pay | | | | plan. It is the same as standard repayment plan |
| concurrently, it can be hard and financially difficult to | | | | except it stretches the repayment period to a |
| manage. Luckily for students, there is the option to | | | | maximum of 30 years. The length of repayment is |
| consolidate all your student loans together. We called | | | | dependent on the total amount borrowed. |
| it Student Loan Debt Consolidation. | | | | You should note that you may ended up paying |
| What is student loan debt consolidation? | | | | more by opting for an extended repayment plan |
| It simply means consolidating all your student loans | | | | because of the fixed interest rate. On the other |
| into one so you only have to make monthly | | | | hand, the monthly payments would be easier to |
| payments to one lender instead of several. The | | | | handle so you will have to decide how much you can |
| advantage is that you pay lower interest rates and | | | | afford to pay each month. |
| most student loan debt consolidation have higher | | | | 3. Graduated Repayment Plan |
| repayment periods. | | | | The Graduated Repayment Plan has a maximum |
| There are many financial institutions and banks that | | | | repayment period of 30 years which is the same as |
| offers student loan debt consolidation. They will pay | | | | extended repayment plan. However, the amount of |
| off your existing student loans to their respective | | | | your monthly payments will increase every two |
| lenders. They will then consolidate the loans into one. | | | | years. |
| The interest rate of the new student loan debt | | | | 4. Income Repayment Plan |
| consolidation is then calculated by taking the average | | | | For income repayment plan, the monthly payment is |
| of the interest rates of your previous student loans. | | | | not fixed. Rather it is determined by several factors |
| That is why your student loan debt consolidation's | | | | such as your total student loan amount, the size of |
| interest rate is lower. | | | | your family and your income level. The maximum |
| Some student loan debt consolidations are payable at | | | | repayment period is 25 years. |
| a fixed rate though so be sure to check with your | | | | So how do you decide which student loan debt |
| lender first. | | | | consolidation is suitable for you? Here's a few tips. If |
| There are 4 different types of student loan debt | | | | you are close to repaying your student loans, then |
| consolidation plans available from lenders each with its | | | | there is no need to get a student loan debt |
| pros and cons. | | | | consolidation unless you foresee some cash-flow |
| 1. Standard Repayment Plan | | | | problems in the coming months. Consider your |
| Standard Repayment Plan offers a maximum of 10 | | | | financial status now and in the coming months or |
| years to repay your student loan debt consolidation | | | | years. Are you able to comfortably pay the loan? |
| at a fixed rate. Payments are calculated by dividing | | | | Getting a new student loan debt consolidation is also |
| the loan amount within that time period at a fixed | | | | a good way to improve your credit score since you |
| interest rate. | | | | have effectively cleared your old student loans and |
| 2. Extended Repayment Plan | | | | getting a new one. |
| There is also the option of an extended repayment | | | | |