Kinds of Student Loan Consolidation

As a student, will be difficult to repay your student loan? Although student loans are great that you and I have no doubt, not in a position of higher education without it. On the other hand, it can be difficult, monthly payments on time because of high interest rates and other external factors, the issue of payment of your portfolio.
If you have a difficult time in repaying student loans, you may consider consolidation of direct loans.
So there is a direct consolidation loan?
In principle, it is easy to exchange or strengthen existing student loans outstanding with a higher rate on a loan with a controlled rate. Rate is determined by the average of your loan, rounded up 0,125 percent.
The combination of direct lending is particularly useful when you know that by default on monthly payments on student loans. Direct Consolidation Loan may mean a new start, as the new loan.
When you consolidate your student loans under the new loan, the loan will be put on your credit card as payment and your credit score.
Prior to the consolidation loan, you need to know what payment plans. There are four main types. You can consider how best to analyze your needs, too.
1. Standard repayment plan
The standard repayment plan, you can have a fixed monthly payment for a maximum of 10 years, depending on the amount you owe.
2. Extended repayment plan
Extended repayment plan, you can save up to 30 years. Of course, the lower the amount you must pay each month. Note, however, that you end up paying more in general, if you spread your payments over long periods of interest.
3. Graduated repayment plan
Graduated repayment plan usually lasting from 12 to 30 years. He graduated from a basic difference between the study and an extended repayment schedules, the amount of your monthly payments will increase every two years.
4. Repayment plan based on income
If you have a job, then this plan may be what you are looking for. To set a monthly repayment income payment schedule on your gross annual income. Other factors are the fruit of your family size and quantity. Compensation is usually 25 years.
Warning, if payment of student loans are around, then a direct consolidation loan may not be appropriate for you, because you will pay more than interest rates for a longer period.
However, if you are having trouble pay off their student loans, and it is still far away, it was interesting, then a direct student loan consolidation may be the answer. Not only that, you pay less interest long term, but can improve your credit rating too.