How To Repay My Student Loans
"I cannot afford to make my every month repayments on my federal -student loans as my- wage is not sufficient for me- to do so."
The answer is- YES. You can- take the proactive- step to consolidate- all of your federal student loans. The method is- beneficial in the coursework of economy downturn where the- rates of interest are comparatively lower. Federal student loan consolidation is designed- to extend the- period of -repayment- so that your- every month payment is much lower- than what you- are paying -currently. Based on the calculation, some people- can lower their every month payment by as much- as 50% after- consolidating -the loan.
There's fundamentally six types of federal- government student loan- consolidation programs. Let's take a closer look at them- after the other.
o Standard Repayment Plan
This plan offers the fixed- every month payments for a maximum- period of ten years but it- requires the highest- every month payment.
o Graduated Repayment Plan
This plan often starts off- with repaying the- interest only. These- payments will gradually- increase until the loan is fully-paid. This plan- costs more in-interest payments when- it is compared with the first plan. It is the most ideal plan for the fresh graduates as- they only require to make small payment when they- have started working with low wage.
o Extended Repayment Plan
This plan offers an extended repayment period than- the standard plan.- The period can- be extended up- to 30 years- but the rate of interest is higher.
o Contingent Repayment Plan
Under this plan, the- amount of repayment- is determined by- your income, your total outstanding -balances- and the size of your relatives. The repayment period- can be up- to 25 years.
Don't be concerned when your current- income is not sufficient to pay- off your study- loans. Go for- federal student loan consolidation. It will- assist to ease- your financial burden.