Federal schooling loan consolidation
These federal loan consolidation programs can be availed by students irrespective of the fact whether they are still studying or have completed their schooling .If you're also undergoing debt issues with the student loans then you can apply for the Federal loan consolidation programs and freedom from the student debts .
Advantages of Federal schooling loan consolidation
The advantages of taking a federal loan consolidation include:
# With the help of these loans the borrower can avoid paying the penalties on the student loans that is charged in case of non-payment.
# The borrower can have the advantage of paying a lower rate of interest on the loan instead of the higher rate of interest that is being paid on the student loan.
The repayment plans
# With the help of federal loan consolidation the borrower can avoid the hassles of paying to some of lenders and can have payments made to a single lender.
Standard Repayment Plan:With this student debt consolidation plan you can pay off the student loan debt over a period of 10 years at fixed rates of interest .
there's fundamentally seven repayment plans available with federal schooling loans consolidation.
Extended Repayment Plan: With this plan the payments can be extended for 30 years at fixed rates .
Graduated Repayment Plan: Payments are similar to extended repayment plan but your every month payments would increase every one years .
With the help of federal loan consolidation the risk of defaulting on the loan reduces and this would help the borrower in improving his credit score.This can help the student to acquire a low interest loan in the future .With the help of federal loan consolidation the student can pay off the loan at flexible terms and lower rates of interest . It is a cost effective way of managing debts.The student is not necessary to make multiple payments and this makes it simpler for the student to manage the payments .
Income Repayment Plan:Monthly payments are not fixed it is based on several factors like the amount that you're supposed to pay, the income level, the size of your relatives, etc . the repayment period on this plan can go up to 25 years.
Why take federal schooling loan consolidation?
