Actually, a new graduate can enjoy about the two possibilities, which the student loans consolidation can offer. However, it is recommended, that the borrower would follow a tight payment time, because the longer he or she will pay, the more he will pay.
1. The Federal Student Loan Consolidation Offers Long Payment Times.
If you have federal student loans, you have a chance to extend the payment time up to 30 years with a fixed interest rate. Actually by the student loans consolidation it is possible to lower the monthly payments even 54 %. The maximum payment time is based on the amount of the separate loans and on the unpaid balance of other student loans.
The interest rates of the Federal Stafford and Federal Plus loans will fluctuate every year, the federal consolidation loan has one fixed interest rate, which is 8.25 % during the whole loan running time.
2. The Borrower Can Choose From 4 Federal Payment Methods.
The payment method you will pick depends on your financial plans. The standard payment means, that you pay a fixed amount every month. You can also choose a gradual payment meaning gradually increasing payments.
Or if a borrower wants to make it sure, he can select the income sensitive payments, which will follow your ability to pay. The extended payments mean, that you will pay over a certain minimum amount each month. You can use the student loan consolidation calculator to give you an idea of the future payments.
3. During The Grace or Repayment Period It Will Be Cheaper.
The grace period is a six months period after the graduation. During this time a graduate has not to pay the loan payments and this is the right time to apply for the student loans consildation.
After the funding of the consolidation is done, you will get Federal Loan Consolidation Disclosure Statement and Repayment Schedule and you start to pay within 30 days
Actually you can change the payment plan once every year just be informing the loan officer without any extra charges or penalties. And you can add eligible loans within 180 days from the funding of the loan consolidation.
The students, parents and married couples can also make the debt consolidation but they cannot combine them into one loan.