A large number of students have been forced to finance their education by getting education loans. Some of the student gets easy loan with lower rate of interest but majority of students find themselves to pay-off their education loan without them, itís difficult to get an education due to the rising cost of higher education.
While studying, apart from payment loans, student might get struck to pay other bills, or to find a better place to live. So comes the direct student loan consolidation solution comes and having the best plan available for the student.
Student loan consolidation plan are applicable for all students whether you are still in school or a recent graduate or already into your new career.
If you are having several students loan, then it is easier to use direct loan consolidation program to consolidate your several loan into one loan payment and making easier to manage them with fixed rate of interest.
There are four plans in direct student loan consolidation for re-payment that you want to consider which is best for your needs.
Standard Student Loan Consolidation
In which maximum student loan period is 10 years and the payment amount monthly is fixed. This plan is best for students who can afford to pay fixed amount every month.
Extended Payment Plan
This type of plan is similar to standard student loan consolidation and having fixed amount monthly except it has a longer repayment period of between 12 to 30 years. The repayment period is depends on the student loan amount which can be larger total amount.
Graduated Payment Plan
Whereas Graduated Payment Plan is suitable for student till schooling who can only repay the loan after getting the job or after their graduation. The payment period is between 15 to 30 years. The intention behind is the as the student has worked for a longer period of time, then their salary will increase and thus able to pay a larger repayment student loan.
Income Contingent Payment Plan
this type of plan is complicated and is based on the student's income level over a period of years. It is also based on the family's annual gross income, other loan amounts owed, other assets, mortgages etc.
Most student usually choose graduated payment plan or the extended payment plan for their direct student loan consolidation.
So direct student loan consolidation program is the best way for the student to pay-off their loans but if they are near to paying-off their existing loans, then itís advisable to consolidate and extends your payments.
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