A Student loan Debt consolidation is the only answer If you have taken out loan after loan to pay for college, you have taken them out and they got to be paid back, there’s just no way around it. That can cause a lot of stress, whether you’re still in college, trying to start a new life outside it, or even 5 to 10 years down the road. You borrowed the money, you spent it, and now you have to pay it back.

This of course leaves you in a position to choose between paying all your bills or just your college loans? What happens when this outstanding debt gets in the way of saving for a deposit for a house, a car, or even a family? It just doesn’t make any sense going through life incurring the debts of living while you’re still burdened with the ones from college.

Fortunately, there’s a solution at hand. You still have got to pay back what you borrowed, but with a student loan debt consolidation you can simply make monthly payments to just one lender.

Think of it as refinancing. The money you borrow from one lender pays off the money you owe to all those other lenders. No more worrying what’s due to whom and when. And the good news is that, the interest rate on the student loan debt consolidation is the weighted average of those other loans, making it lower overall and bringing your monthly payment down accordingly. Some of these debt consolidation loans are agreed at a fixed rate, so you don’t have to worry when July 1 comes around each year that your payment will go up.

Loan Consolidation has loads of benefits, some being:

• Locking in all loans at a lower interest rate
• Lower rate of interest
• Lower monthly payments
• Worrying about one single payment instead of many
• Longer payment schedule

Among the student debt consolidation loans available, there are four different types of repayment plans available from lenders with one bound to be just what you’re looking for.

Standard Repayment Plan

The Standard Repayment Plan offers you a maximum of 10 years to repay your student loan, but payments are divided within that time limit at a fixed interest rate.

Extended Repayment Plan

Extended Repayment Plans relieve the burden of monthly payment amounts still further by stretching the time to pay off the loan to between 12 and 30 years (the length of time is dependent on the total amount borrowed). Again, the interest rate is fixed for that time period, and the payments are a lot lower. You should note that over time, you will end up paying a larger amount by opting for the extended repayment plan, but the monthly payments will be a lot easier to handle.

Graduated Repayment Plan

The Graduated Repayment Plan is much the same as the extended plan allowing you to spread your monthly student load debt consolidation payments over a period of between 12 to 30 years, however the amount of your monthly repayments will increase every two years.

Income Contingent Repayment Plan

This fourth and final plan appeals to a number of people because it takes into account what’s going on in your life. For this type of Income Repayment Plan, a reasonable monthly payment amount is determined based on your annual gross income, family size, and total direct student loan debt. Another advantage of this type of repayment plan is that it spreads the payments over 25 years.

The Solution

You need to find the right lender that deals specifically with student loan debt consolidation. With so many financial institutions operating in the market whose main area of interest is dealing with debt consolidation for students, your task of finding the right lender can become quite daunting.