College Loan Consolidation – The Four Federal Plans

By Nick Fitzgerald

The Four Federal Student Loan Consolidation Plans

Anybody studying in the United States and owing a student loan is eligible for federal consolidation plans.

Federal college loan consolidation plans are applicable for all students regardless of if you are still in school, a graduate, or are already mid-career. If you currently have a number of loans, it is easier if you use federal consolidation to consolidate them into one loan payment.

There are four types of federal college loan consolidation to choose from:

Standard Student Loan Consolidation

The maximum loan period is 10 years and the payment per month is fixed. This type of plan is suitable for those who can afford to pay a fixed amount per month. The interest rate does not make a big difference in large consolidation loans. This is the easiest plan for those on a budget.

Extended Payment Plan

This type of plan is nearly the same as the standard consolidation except it has a longer repayment period of between 15 to 30 years. The repayment period is based on the student loan amount. Ultimately, this plan will reduce the monthly payments further by extending the life of the loan.

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Graduated Payment Plan

This plan is best for students still in school that can only repay the loan when they have a job after school. The repayment period is between 15 to 30 years. The payment per month starts low and increases slightly every two years.

Income Contingent Payment Plan

This plan is complex and is based on the student’s income level over a number of years. It is also based on the family’s annual income, other loans owed, assets, mortgages etc.

Most student usually choose graduated payment plan or the extended payment plan for their federal student loan consolidation. The choice is ultimately up to each student. It is recommended that you take a close look at your individual circumstance at gage the pros and cons of each plan

College debts loan consolidation is a resource site designed to assist students in finding more information on consolidating their college loans. Http://

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