| If that is what it takes to improve your | | | | rates. |
| life, you should be proud you did it. | | | | |
| Fortunately for all of us stuck with student | | | | If you put it off until after the grace |
| loan debt there are federal student loan | | | | period your rate will be more like 7.125% to |
| consolidation programs that can cut your | | | | 7.25%.These rates vary, so check them out |
| student loan payments in half. | | | | carefully before you buy. |
| | | | |
| These programs will combine multiple loans | | | | Consolidated Federal Loan Downsides |
| into one loan which not only will save you | | | | |
| money but it cuts out the hassle of multiple | | | | Federal student loan consolidation does have |
| payment to multiple lenders. | | | | a downside. When you consolidate your loans, |
| | | | it lowers your payment by extending the |
| Consolidation Backed By Federal Government | | | | amount of time you have to pay off the loan. |
| | | | With federal student loan consolidation you |
| Federal student loan consolidation is backed | | | | get to choose if you want a standard |
| by the federal government and allows you to | | | | repayment in which your monthly payment for |
| extend your repayment terms. | | | | the life of the loan is fixed. |
| | | | |
| If you have Stafford loans, you have a | | | | If you opt for graduated repayment your |
| variable interest rate that adjusts annually. | | | | payments start low and increase at intervals |
| When you opt to consolidate, you get the | | | | specified by the lender. |
| choice to lock in at a low rate and there are | | | | |
| many offers out there that will charge you no | | | | There is also an income sensitive repayment |
| fees. | | | | in which your payment is determined by your |
| | | | income. This type of consolidation will |
| They want your business and you should shop | | | | increase as your income increases. |
| around. There are many competing financial | | | | |
| institutions that are competing for your | | | | Watch Out For Minimum Payment Schedules |
| money and that puts you in the drivers seat. | | | | |
| You want to insist on the best possible deal | | | | No matter what type of loan you choose the |
| on the market. | | | | federal rules governing student loans set a |
| | | | minimum payment of fifty dollars. These |
| Consolidation Loans Federal Providers | | | | rules are relaxed for the income sensitive |
| | | | repayment option. The most popular choice is |
| Sallie Mae is a government institution that | | | | the standard repayment. The payment always |
| offers a 'Best Rate Promise.' They guarantee | | | | stays the same. |
| you that they will give you the 'lowest | | | | |
| official student loan rates available to you' | | | | If you choose any loan beside the standard |
| when you consolidate. If you have just | | | | repayment, it does not mean you are locked |
| graduated and your loans carry a variable | | | | in. You do have the option of changing your |
| rate you want to consolidate before your six | | | | mind and applying for one of the other types |
| month grace period ends. | | | | of loans. The option may still be open but |
| | | | it depends on the terms of your loan. |
| If you consolidate your loans before the end | | | | |
| of the six month grace period ends, many of | | | | You can always contact your lender for a full |
| you can lock in 6.625% or 6.75% interest | | | | review of your options. |