Debt Consolidation Help for Your Student Loans (cont.)
Contributed by Deb Powers
If you're certain that a Federal Direct Consolidation Loan will be to your benefit, you still need to be eligible for the program. The eligibility guidelines can be found here:
http://loanconsolidation.ed.gov/borrower/beligible.shtml
and the list of loans that are eligible for consolidation can be found here:
http://loanconsolidation.ed.gov/borrower/bloans.shtml
Which Federal Direct Consolidation will be the most help in managing my debt?
The four available consolidation repayment plans each take into account differing circumstances in your life.
Standard: The standard repayment plan is a fixed-rate plan with fixed monthly payments for a maximum of ten years. The minimum payment is $50 monthly.
Extended Repayment Plan: A fixed rate plan with fixed payments extending over the course of 12-30 years. Payments are a minimum of $50, and the life of the loan is dependent on the total amount of debt owed.
Graduated Repayment Plan: Under the Graduated Plan, payments start out low and increase, generally, every two years. The length of the repayment period varies from 12 to 30 years.
Income Contingent Repayment Plan: A borrower's monthly payment is based on a borrower's annual Adjusted Gross Income (AGI), family size, and the total amount of Direct Loans.
If your student loan debt is out of control, or if you just want to manage it more easily, visit www.loanconsolidation.ed.gov to see how the federal government can help you with a direct consolidation loan.
