The four categories of the government student loan consolidation

1. The standard payment plan: Offers fixed rate monthly payments of at least $50 for up to 10 years. Usually, borrowers don’t get too much interest for this structure because the repayment spell is too short.

2. The extended payment plan: If there is a high debt load this option may help to reduce the monthly payments. Also, keep in mind that the longer it takes to clear the loan, the more interests must be paid. There is a difference between this plan and the standard payment plan and it consist of monthly payments which are extended over a period of 12 up to 30 years.

3. Income contingent repayment plan (ICR): Means that monthly payment made thru this option is based on the full income, loan amount and the total members of your family.

4. The graduated payment plan: This plan means that monthly payments begin from a low level and increase around every 2 years and the repayment period can begin from 12 up to 30 years but, obviously, it depends on the actual debt load.

It’s useful to compare the price of repaying unconsolidated student loans with the price for a government student loan consolidation. It’s recommended to compare, review and evaluate these plans in order to find out which of them best fit your requirements. Alternatively, you may call for a counsellor than can also help you take the best decision. Remember, the decision must be carefully taken, based on options and choices while interest rates are very low. Actually one of the best opportunities represents the government student loan consolidation program.

Do not refinance for the student loan if you are near the end of the period, even if you are saving a few bucks per month because the additional time you are financing is going to cost you more in the long run. Pay attention to consolidate them into a single loan with terms, rates and conditions you can afford. Also, try to pay more often than the schedule, because this way, you may reduce the interest.