by Jessica Mousseau
A student loan consolidator helps lower your monthly payment from your loan in college. If you have several loan accounts with separate payments that you would like to combine into one convenient monthly payment. They make things easier so that you don't have to stress too much about paying a huge amount that you can not afford right of college.
Some fine details about rates
Student loan consolidator offices have fixed interest rates. The interest rate on consolidation loans is calculated by taking the weighted average of the interest rates for all the loans you want to consolidate and then they round it up 1/8th of 1%. The length of time you would have to repay a consolidation loan. The total amount of your education debt determines the maximum payoff period for your consolidation loan.
Debt ranges
A $10,000 - $19,999 loan gives up to 15 years to payback.
A $20,000 - $39,999 loan gives up to 20 years to payback.
A $40,000 -$59,999 loan gives up to 25 years to payback.
A $60,000 or more gives up to 30 years to payback.
Many student loan consolidator offices will not help you reduce your loans if they are less than $10,000. If this becomes on of your problems, you should ask your existing lender about combined billing for your accounts or alternate repayment plans that may temporarily provide lower monthly payments.
Different payment options
Standard payment plan- Your monthly payments are set for life, on the loan.
Graduated repayment plan- The first 2 years, your monthly payments will be low and interest-only. The next 3 years, you continue to pay the interest and also pay off the principal.
For the remainder of your loan, you will be put on a standard payment plan. Another payment plan is the Income-sensitive repayment plan, this is make your monthly payment amount vary each year (for up to 5 years) based on your annual income.
Now that you know a little but more about the payments rates, you can decide if going through a student loan consolidator is best for you.
A student loan consolidator helps lower your monthly payment from your loan in college. If you have several loan accounts with separate payments that you would like to combine into one convenient monthly payment. They make things easier so that you don't have to stress too much about paying a huge amount that you can not afford right of college.
Some fine details about rates
Student loan consolidator offices have fixed interest rates. The interest rate on consolidation loans is calculated by taking the weighted average of the interest rates for all the loans you want to consolidate and then they round it up 1/8th of 1%. The length of time you would have to repay a consolidation loan. The total amount of your education debt determines the maximum payoff period for your consolidation loan.
Debt ranges
A $10,000 - $19,999 loan gives up to 15 years to payback.
A $20,000 - $39,999 loan gives up to 20 years to payback.
A $40,000 -$59,999 loan gives up to 25 years to payback.
A $60,000 or more gives up to 30 years to payback.
Many student loan consolidator offices will not help you reduce your loans if they are less than $10,000. If this becomes on of your problems, you should ask your existing lender about combined billing for your accounts or alternate repayment plans that may temporarily provide lower monthly payments.
Different payment options
Standard payment plan- Your monthly payments are set for life, on the loan.
Graduated repayment plan- The first 2 years, your monthly payments will be low and interest-only. The next 3 years, you continue to pay the interest and also pay off the principal.
For the remainder of your loan, you will be put on a standard payment plan. Another payment plan is the Income-sensitive repayment plan, this is make your monthly payment amount vary each year (for up to 5 years) based on your annual income.
Now that you know a little but more about the payments rates, you can decide if going through a student loan consolidator is best for you.
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