Is Student Loan Consolidation Alone Enogh For You?

    When you have several thousands in student loans to pay back, there is little doubt that consolidating your student loans will help you reduce your monthly payments.  By consolidating your loans, you reduce all your loans into a single loan therefore having to only pay one lender.  Consolidating your loans also extends the amount of time you have to repay you loans thereby making a significant reduction in the amount you have to pay each month. Nevertheless, for some people, consolidation alone might not be enough to bring down your monthly payments to a level you can afford. If you find yourself in such a situation, you might consider taking an income-based repayment plan. This plan is an new payment plan for holders of federal student loans. This works by offering payment caps based on your income and the size of your family. In general, your repayments will be less than 10% of your income and if after 25yrs you still have repayments to make, those will be forgiven. This plan is more suitable for people who owe large amounts of student loan debts and have low income. For example, students who owe debt from undergraduate and graduate schools. This has become very popular with medical and law students. The income-based repayment plan is not for everyone. If  loan consolidation is OK to bring down your monthly repayments to a level you can afford, then there is no need to go for IRB. But if you find yourself in the situation where even after consolidation you still can’t afford you monthly repayments, then you should apply for income-based repayment plan. No related posts. Powered By iWebRSS.co.cc