Even the best laid plans can end up not working out at all. This simple truth also applies to student loans. Regardless of how much time and effort you spend on trying to plan out how you will pay off everything you owe once you have graduated, problems sometimes arise and ruin your plans, leaving you with defaulted student loans.
The Direct Student Loan Consolidation Facility – A Life Line
The direct student loan consolidation service can help individuals who find themselves overwhelmed with high cost, high interest student loans or deep in uncontrollable credit card debt, even if they do not have a job. This service is basically an additional loan that consolidates all of your current student loans while also getting you a better interest rate. That will allow you to rearrange your finances and get them back under control.
If you choose to use the direct student loan consolidation service you will benefit in many ways. For example, your credit record will show that all of your debts will be paid.
Find Out About Student loan Consolidation Plans
Consolidation services for students can be categorized into four different types. They are:
Standard Repayment Plan – The simplest of the four consolidation service plans, it requires that the loan be repaid within ten years of the time it is taken out. Payments must be made each week, month, or six months.
Extended Repayment Plan – This plan requires that very small amounts of the total loan be paid each month for thirty years. If you are not well established in your career, this option will probably be best for you. The catch is that the interest that adds up over a thirty year period is astronomical.
Graduated Repayment Plan – Similar to the extended repayment plan, the graduated plan also extends over the course of up to thirty years, but the monthly payments for the loan increase every two years. This increase is agreed upon when the loan is first taken out.
Income Contingent Repayment Plan – Based off of figures like family size, number of dependents, and gross income, this loan option's monthly payment can be adjusted. This loan can last for up to twenty-five years. This repayment plan is flexible and so does not require a lot of effort to pay off successfully.
When deciding which loan type is best for you, be sure to do your homework so that you can make the best choice possible and reduce your concerns about your student loans.