Student Consolidation Loans by macangoreng


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Which Student Debt Consolidation Loan Is Best For You

If you have too much student debt with many loans you have to pay simultaneously you should
consider student debt consolidation. Student debt consolidation differs from regular debt
consolidation mainly because student loans come with fewer interest rates and longer repayment

Consolidating student debt will reduce your monthly payments to a single installment while at the
same time reducing the average interest rate and extending the average length of your loans. This
will lift the heavy burden of student debt from your shoulders and help you make ends meet.

Different Repayment Plans

Given that student loans are repaid over a long period of time, repayment plans are the essence of
student loans. When you decide to apply for a loan, the differences between repayment plans are
the key issue that will determine which student loan is suitable for your needs.

Traditional Repayment Plan

The common repayment plan consolidates all your student debt into a single loan that can be
repaid in up to 12 years with usually a fixed interest rate (variable interest rates can be obtained
though). This is the most common repayment plan with balanced interest rate and repayment

Income Based Repayment Plan

In this kind of repayment plan, the monthly payments are not set but determined each period by
the outstanding debt, market conditions (interest rate) and mainly, your income. This is obviously
great for people who do not have a steady income, since the amount you will have to destine for
repaying the loan will not be fixed. If any month you earn more, you will be paying a higher amount
and thus cancelling your loan faster. If on the other hand, you earn too little on certain month, you
will not have to worry since your loan installment will also be reduced.

Graduate Repayment Plan

There are two kinds of graduate repayment plans. The first can be paid in up to 35 years but will
not be due till you graduate. Thus during the whole period of college studies, you will not have to
put aside any money for paying off the loan. The second type of loan has the same term as the
first one, though it usually lasts less, but it includes monthly installments during college. These
installments only cover the principal. The interests on the loan will only be paid after graduation.
With this graduate repayment plan, the monthly payments during college are greatly reduced.
Extensive Repayment Plan

The extensive repayment plan can last as much as 35 years and works exactly as the traditional
repayment plan. It has a higher fixed interest rate (your can have it reduced by selecting a variable
rate. Highly risky though). Bear in mind however, that though the monthly payments are
significantly reduced and affordable. The loan term implies that you will be paying sometimes
more than 100% of the amount borrowed over the whole life of the loan.

When it comes to consolidating debt, you need to consider all your options and request loan
quotes from lenders. Compare interest rates and fees and decide which repayment program is
best for you. Whichever your decision is, make sure you will be able to meet your monthly
payments and have a surplus to cover for unexpected events.

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get more information about student consolidation loans here

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