Government Student Loan Consolidation
Is It The Solution For You?
No cost student loan consolidation here
Students across the country are jumping on the government student loan consolidation bandwagon. And for good reason!
Whether you are still in school, a graduate, unemployed or comfortably employed you can save thousands through a government student loan consolidation by locking in record low interest rates before they go up.
If you need to reduce your monthly student loan payments by extending the amount of time you have to pay your debt, this may be the solution for you.
If your loans are in default you may still reap the benefits. Benefits include protecting your credit rating, saving money by locking in lower interest rates or lower monthly payments.
Consolidate your student loans, as low as 1.625%
Federal Student Loan Consolidation For students or parents with federal loans that have not been consolidated previously, are out of school and in repayment of their loans, or will be graduating within six months, have more than one lender that holds their loans and are over the $15,000 student loan amount.
For Federal Stafford (students) and
Federal PLUS Loans (Parent Loan for Undergraduate Students).There are a number of rules that the government has instituted concerning who is and who is not eligible for consolidation.
We have 4 questions that must be answered correctly in order to determine eligibility:
1) Do you have more than $15,000 in federal student loan debt?
Answer Must be Yes
2) Do you make more than one monthly payment for the loans mentioned above?
Answer Must be Yes
3) Are you currently in repayment and out of school or will you be leaving within the next six months?
Answer Must be Yes
4) Are you in default on all of your student loans?
Answer Must be No
If you qualify with the above, here is your solution:
Cut your monthly student loan payment by up to 60%
On the other hand, a government 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.
If you have more than one student loan this 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.
To help make the repayment process easier and more attractive, there are four 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 approximately 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.
Take the time to compare the cost of repaying your unconsolidated student loans against the cost of paying a government student loan consolidation.
It's in your best interest to explore your government student loan consolidation options.
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