The Four Types Of Federal Student Loan Consolidation

The Four Types Of Federal Student Loan Consolidation



The Four Types Of Federal Student Loan Consolidation
If you​ are an​ American student or​ one studying in​ an​ American school,​ then you​ are eligible for federal student loan consolidation from the​ U.S government.
Federal student loan consolidation plans are applicable for all students whether you​ are still in​ school or​ a​ recent graduate or​ already into your new career.
If you​ are successful in​ your student loan consolidation application,​ it​ will help you​ to​ reduce the​ student loan payment amount each month and/or allows you​ more time to​ pay off your student loans.
If you​ currently have several student loans,​ it​ is​ easier if​ you​ use federal student loan consolidation to​ consolidate them into one loan payment thus making it​ easier to​ manage.
The Four Types Of Federal Student Loan Consolidation
The U.S government in​ a​ bid to​ attract more students to​ take up their student consolidation loans have come up with four plans to​ suit the​ different needs of​ students.
They are :
* Standard Student Loan Consolidation
The maximum student loan period is​ 10 years and the​ payment amount per month is​ fixed .​
This type of​ plan is​ suitable for students who can afford to​ pay a​ fixed amount per month .​
The interest rate would not be a​ big factor in​ huge student consolidation loans
* Extended Payment Plan
This type of​ plan is​ similar to​ standard student loan consolidation except it​ has a​ longer repayment period of​ between 15 to​ 30 years .​
The repayment period is​ dependent on​ the​ student loan amount.
* Graduated Payment Plan
This type of​ plan is​ suitable for students still schooling and can only repay the​ student loan when they have a​ job after they graduated .​
The payment period is​ between 15 to​ 30 years .​
The payment amount per month usually starts low and increase steadily every 2 years .​
The intent is​ the​ as​ the​ student has worked for a​ longer period of​ time,​ their salary will increase accordingly and thus able to​ pay a​ larger repayment student loan.
* Income Contingent Payment Plan
This type of​ plan is​ complicated and is​ based on​ the​ student’s income level over a​ period of​ years .​
It is​ also based on​ the​ family’s annual gross income,​ other loan amounts owed,​ other assets,​ mortgages etc.
Most student usually choose graduated payment plan or​ the​ extended payment plan for their federal student loan consolidation.




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