subject: Consolidate Student Loans - Repayment Plans [print this page] It is always good to consolidate student loans once your grace period is over. When you consolidate student loans, a more manageable approach is established to make one single payment rather than dealing with multiple lenders.
To pay off your loans as quickly as possible depends on the amount you owe. When you consolidate students loans, paying off your debt is simpler depending on the repayment plan selected and the amount you owe.
Consolidation loan providers will give to access to many repayment plans that are available for your consolidated student loans. Some alternative that these providers include are extended repayment, income contingent repayment and graduate repayment.
These alternative repayment options all depend on what type of loan you are dealing with. A ten-year repayment plan will be an established if you don not specify the precise repayment term for your consolidated student loans.
When you do decide to consolidate student loans, this will reduce the amount you pay for the monthly payments. This however can extend the term of the loan. Federal loans in general offer and extension to the 10 year repayment plan. It all depend what you owe on the loans and you can extend the term of the loan up to 30 years.
Having a lower monthly payment on your student loans is easier on the wallet at first but in reality you end up paying more in the long run do to interest payments.
It is generally advisable to go with the standard ten-year plan when you consolidate student loans. You can usually save some money this way. The alternate repayment plans call for lower monthly payments, but you will end up shelling out a lot of cash on interest for a longer stretch of time if you are not careful.
Be sure to do the research on consolidating your student loans and also check on the ten year plan. Do this, and everything will work out.
by: Norman Harris
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