Student Loan Consolidation Plan Categories

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You can opt for any student loan consolidation plan according to your liking; there are basically four categories that you can choose from, the four categories are:

1. Standard Student loan consolidation plan
2. Extended Student loan consolidation plan
3. Graduated Student loan consolidation payment plan
4. Income contingent Student loan consolidation plan

Standard plan: This plan is offering a fixed rate of interest for short periods of time, up to maximum ten years. It requires monthly payments of $50 minimum in the time period allotted.

Extended payment plan: This plan is similar to the standard plan, but can extend over longer period of time (up to 30 years). This plan can be very useful when you have high debts, so this can make monthly payments smaller but you may end up paying higher rates of interest.

Graduated payment plan: In this plan it is very useful for students who are earning less in the beginning and they can bear more burdens when they have high income in future. The main aspect of this plan is you pay small installments in the beginning, but every 2 years the installments increase, thus you have lesser load when you are not earning much. This plan is for 10 to 30 years.

Income Contingent Repayment (ICR) Plan: Here you’re the monthly payments are estimated by considering many factors such as your income, family size and loan amount. So it is generally different from individual to individual.

So based on all these factors you need to compare the plans and see that which will suit the best to your needs and go for that plan. You should be very careful in planning it as your future is depending on it, and make sure that which ever plan is more suitable to you, do not get tempted by low interest plans as they might have more burdens. So make sure you choose your student loan consolidation plan according to your flexibility.

Finally keep in mind the interest rates, time period, and many other options before going for any student loan consolidation plan.

Points to be kept in mind
• Consolidate all your student loan consolidation plans in to one.
• Make sure you pay well off before time and if you can pay early please do it.
• Do not refinance if you are at the end of your plan, and if you are saving not more than a few dollars a month.