Why Consolidate Student Loans ?
It is best to consolidate student loans as early as possible. This will help you have a management plan in place and dealing with less paperwork and sending payments to multiple lenders.
Keep it simple by consolidating your student loans to one single account that will be paid off over the course of time. How long will it take to pay off your consolidated loan? Well, that depends on the amount you owe. It also depends on the repayment plan you choose. Let's go over some of the more common options.
Consolidation Loan agencies will provide you to access of many option repayment plans for you student loans. These alternatives consist of extended repayment, income contingent repayment and graduate repayment.
The alternative repayment plans depend on how much you owe and the type of loan youre dealing with. In general, most people choose the ten-year repayment plan if other long term repayment plans are not chosen.
Note that when you consolidate student loans, this will reduce the size of the monthly payments that you make. However, this will also extend the term of the loan. Usually this means an extension past the 10-year repayment plan that is standard with federal loans. Depending on the amount that you owe, you can extend the term from 10 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.
In general, it is best to go with the ten year standard plan when you consolidate student loans. The alternative repayment plans will lower your monthly payment each month, but you end up paying more in the long run.
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.
Keep it simple by consolidating your student loans to one single account that will be paid off over the course of time. How long will it take to pay off your consolidated loan? Well, that depends on the amount you owe. It also depends on the repayment plan you choose. Let's go over some of the more common options.
Consolidation Loan agencies will provide you to access of many option repayment plans for you student loans. These alternatives consist of extended repayment, income contingent repayment and graduate repayment.
The alternative repayment plans depend on how much you owe and the type of loan youre dealing with. In general, most people choose the ten-year repayment plan if other long term repayment plans are not chosen.
Note that when you consolidate student loans, this will reduce the size of the monthly payments that you make. However, this will also extend the term of the loan. Usually this means an extension past the 10-year repayment plan that is standard with federal loans. Depending on the amount that you owe, you can extend the term from 10 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.
In general, it is best to go with the ten year standard plan when you consolidate student loans. The alternative repayment plans will lower your monthly payment each month, but you end up paying more in the long run.
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.
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Before you start paying off your students debt please read Norman's advice for consolidatingStudent debt, and consolidate Student debt
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