Student Loan Consolidation Programs

Depending on your lender, you can receive different loan consolidation and repayment options. Each has benefits. Before consolidating your loans, be sure to do research and determine which program best suits your lifestyle and repayment goals.

Option One: Standard

A standard loan consolidation plan is among the most simple of the repayment options. You will have a fixed payment (the same every month) for 10 years, period. This is a great option for borrowers who are eager to eliminate their debt and have the money to do it in a short period of time. Borrowers who might need the flexibility of lower payments over a longer period of time might consider another loan program.

An extended plan extends the term of the loan up to 30 years. The repayment terms and conditions vary by lender, so it's best to read over each individual proposal, as no two will be identical. Borrowers will qualify for different repayment periods, which makes this plan particularly attractive to those who have extremely high loan balances. One drawback is that the extended plan will take longer to pay off.

The graduated repayment offers low payments for the first few years, then gradually increases the payment amount over the life of the loan. This can be a good solution for someone entering the workforce who plans on earning more as the years go by. Not all lenders' programs are the same, so be sure to ask about the differences before selecting an option.

An income dependent consolidation bases your monthly payment on your existing financial situation. This means that as you earn more money, you'll be responsible for paying more each month. Like other programs, not all lenders offer this and not all borrowers are eligible. Inquire as to whether it best fits your situation. If you don't know when to consolidate, look through the help we have given.