Government Student Loan Consolidation Plans Have Four Categories to Choose From

Standard Plan: The standard repayment plan offers astudent loan consolidation.
fixed-rate plan with monthly payments of at least $50It would be in your best interest to review and
for up to ten years. Borrowers pay less interest underevaluate each of these plans to find out which one
this plan because the repayment period is shorter.suits you best. Many financial institutions have
Extended Payment Plan: The difference between thiscounselors than can also help you make choices about
plan and a standard plan is monthly payments areplans. You should carefully consider your options and
extended over a period of 12-30 years. If you have achoices, interest rates are very low and will probably
high debt load this may help you reduce your monthlyrise soon so now is your best opportunity to take
payments but the longer you take to clear the loan, theadvantage of government student loan consolidation
more interests you will pay.programs.
Graduated Payment Plan: Under this plan monthlyRemember
payments start out low and increase approximatelyConsolidate them into a single loan with rates and
every two years. The repayment period can be fromterms you can afford. Pay more often than the
12-30 years depending on your debt load.schedule - you will reduce your over all interest.
Income Contingent Repayment (ICR) Plan: YourDon't refinance if you are near the end of the term for
monthly payments via this plan are based on youryour student loan. Don't refinance if your just saving a
income, family size and loan amount.few dollars a month - the additional time you are
Compare the cost of repaying your unconsolidatedfinancing will cost you more in the long run.
student loans with the cost of paying a government