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