If you are an American student or one studying in an American school, then you are eligible for federal student loan consolidation of the U.S. government.
Federal student loan consolidation plans are applicable to all students, whether you are still in school or a recent graduate or already into your new profession.
If you are successful in your student loan consolidation application, it will help to ensure the student loan amount per month and / or you can use more time to pay your student loans.
If you currently have several student loans, it is easier if you federal student loan consolidation to make them into a loan payment, making it easier to handle.
The four types of Federal Student Loan Consolidation
The U.S. government in a bid to attract more students to take their student consolidation loans have four plans for the different needs of students.
* Default Student Loan Consolidation
The maximum student loan period is 10 years and the payment per month. This type of planning is suitable for students who can afford it, 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 unless it has a longer duration of between 15 to 30 years. The duration depends on the student loans.
* Graduated Payment Plan
This type of planning is suitable for students still schooling and can only repay the loan if they have a job after they graduated. The payment period is 15 to 30 years. The payment amount per month usually starts low and is every 2 years. The intent is how the student has opted for a longer time, their salaries be increased and thus in a position to pay a larger repayment of loans.
* Income Contingent Payment Plan
This type of plan is complicated and is based on the student’s income over a period of years. It is also based on the family’s annual gross income, other loans receivable, other assets, mortgages etc.
Most students usually choose graduated payment or extended payment plan for the federal student loan consolidation.