Goverment Student Loan Consolidation: Is It The Best Solution for You?

Whether you are still in school, a graduate, unemployed or comfortably employed you can save thousands through a goverment student loan consolidation by locking in record low interest rates before they go up.

Students across the country are jumping on the goverment student loan consolidation bandwagon. And for good reason!

If you need to reduce your monthly student loan payments by extending the amount of time you have to pay your debt, a goverment student loan consolidation may be the solution for you.

Benefits include protecting your credit rating, saving money by locking in lower interest rates or lower monthly payments. If your loans are in default you may still reap the benefits of a goverment student loan consolidation.

On the other hand, a goverment student loan consolidation may not be the answer for you if you’re nearing the end of your repayment term. There’s not a lot of ‘cents’ in spending your valuable time rearranging your loan portfolio, especially if it means extending the amount of time you have to pay off your debt. If you can manage your existing monthly payments stick with it because you will save money over the long term.

To help make the repayment process easier and more attractive, there are four goverment student loan consolidation plans for you to choose from.

Standard Plan: The standard repayment plan offers a fixed-rate plan with monthly payments of at least $50 for up to ten years. Borrowers pay less interest under this plan because the repayment period is shorter.

Extended Payment Plan: The difference between this plan and a standard plan is monthly payments are extended over a period of 12-30 years. If you have a high debt load this may help you reduce your monthly payments but the longer you take to clear the loan, the more interests you will pay.

Graduated Payment Plan: Under this plan monthly payments start out low and increase aproximately every two years. The repayment period can be from 12-30 years depending on your debt load.

Income Contingent Repayment (ICR) Plan: Your monthly payments via this plan are based on your income, family size and loan amount.

If you have more than one student loan, a goverment student loan consolidation will allow you to combine all of them into one monthly payment while locking in a low interest rate. Ultimately, your debts will be easier to manage.

Take the time to compare the cost of repaying your unconsolidated student loans against the cost of paying a goverment student loan consolidation.

It’s in your best interest to explore your government student loan consolidation options. Consult https://loanconsolidation.ed.gov and participating lenders to discover if goverment student loan consolidation is the right choice for you. If you decide consolidating your student loans is in your best interest, taking the time to compare what participating lenders offer could save you lots of money.


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