Student Loan Consolidation:

By far, the hardest part of completing the student loan consolidation process is getting started. As because there are diverse numbers of options and programs there in the finance markets which can be bit overwhelming for student to select the proper loan consolidation. By the time students finish there education they usually have more than one loan that also on different terms and conditions. Student loans take at least five to ten years to pay off.

The Direct Student Loan Consolidation is one of the most popular Federal student loan option.

There are 3 categories Direct Loan Consolidation:

1) Direct Plus Consolidation Loan.

2) Direct Subsidized Consolidation Loan

3) Direct Unsubsidized Consolidation Loan

Direct Consolidation Loans has fixed interest which is fix for the life of loan. When you consolidate your Direct loans you need to know how to handle the payments and what the program itself entails. The Direct loan program has a number of different types of repayment arrangements to meet the variety of income situations of borrowers. There are 4 types of Direct student loan consolidation repayment plan as follows:

1) The Standard Plan Of Direct Student Loan .

The standard repayment plan gives you a fixed amount to pay for each monthly installment. You simply make the same payment each month until your loan is paid off. You can make payments greater than the installment amount and pay off your loan early without having to pay any penalties. This simple plan is easy for anyone with a steady income with a low to moderate level of debt. This option gives you up to 10 years to repay your loan.

2) The Extended Plan For Direct Student Loan Consolidation.

This particular option is for the people who have larger loan debts . This plan is typically for the people who have completed there medical or law school programs . You need a greater term to repay the debt, and in most cases you do not start out your career at the top of the market. This plan usually has up to 30 years for repayment. This the reason you need to pay more in interest payment.

3) The Income Contingent Plan.

This plan is for the people who have difficulty in entering the careers that have lower than average pay scale. The repayment term for Income Contingent plan is maximum 25 years. The monthly payments are determined based on your gross annual income.

4) Graduate Plan

In this plan repayment starts with a particular installment amount ,installment amount is paid for numbers of years as it gradually increases (means the amount of monthly payments will increase in every 2years) . But this is assured that your graduated repayment amount will not exceeds 1.5 times the amount you pay with the standard rate . This plan is great for the people who expect there income to be increase gradually and want to make a shorter payment plan.

Contact the Department Of Education or your lenders about applying for a Direct Student Consolidation Loan today. They can suggest the best course of action for your financial needs. Student loan consolidation could very well be the option you need to regain control of your life.