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[F141]Federal College Loan Consolidation

by Martin Tan, Mar

The Sallie Mae college loan consolidation program provides new graduates with an option that prevents defaulting on federal education loans and generates a few extra dollars monthly. Existing student loans are rolled into a one Sallie Mae Consolidation loan, which provides a lower interest rate (as low as 4.75%). As a new graduate, a few percentage points on interest rates can make a tremendous difference in the payments over the term of the consolidation loan. The lower payments leave more spending cash for life expenditures. Lower percentage rates could mean the difference eating a macaroni and Cheese dinner and a healthy meal.

The interest rate on federal student loans can change every year. When it changes, so does your monthly payment. With a Sallie Mae college loan consolidation, your interest rate is locked in for the length of the loan and that's a secure feeling you'll want to have. With Sallie Mae you will also have the option to increase the length of the loan, resulting in lower monthly payments spread out over a longer period of time. While this may be the best choice for you, especially now that you're just entering the job market; remember that a longer loan period means you're paying more in the long run.

Sallie Mae loan applications are free and there are no fees or credit checks required. Once the Sallie Mae college loan consolidation process has begun, existing loans balances are paid in full. This leads to a better credit rating.

It isn't uncommon for people to get in a bind sometimes and make a payment late at times, or not at all. If you've exhausted your deferment and forbearance options, it may be time to consider consolidation to give you a clean slate. A Sallie Mae loan may be the fresh start you need. If you see that your situation is getting to the point where you may default on one or more loans, applying for the Sallie Mae college loan consolidation program now can save you a great deal of trouble later.

There are four options for repayment within the Sallie Mae system: Standard, the Extended, Graduated, and Income Contingent.

The Standard Repayment Plan - fixed monthly payments, maximum loan term is no more than 10 years

Extended Repayment Plans - offer fixed monthly payments, loan terms range between 12 and 30 years and depend on the total amount of the loan approved, lower monthly payments are a benefit due to the extended payment schedule

Graduated Repayment Plans - loan terms range between 12 and 30 years, monthly payments are scheduled to increase at two-year increments

The Income Contingent Repayment Plan - calculated based on a number of factors including your annual gross income, family size and total amount of your consolidated loan and loan term is 25 years

Most students graduate college with student loans; the aim of a student loan is to help you pay for college on the gamble that, with a degree, you'll earn more money than you will without one. It's usually a good gamble, but in the years right after leaving school, it's often kind of rocky. While your new degree should inspire confidence and help you in the workforce, student loans can be a bigger problem than you may realize. If you have multiple student loans than you have multiple bills to pay and multiple due dates to remember, and before you know it, you've missed a payment. Missing payments hurts your credit rating, which in the long term is more expensive than the fees are. You can be faced with years of credit repair even if you are making great money and have a steady job. A school loan consolidation can help you keep your bills in order and save your credit from costly mistakes.

Fresh minted college graduates face a lot of expenses, from moving to starting a family, and a turbulent job market. It's not that hard to have an unexpected turn in finances put you severely behind, and your student loans are a huge expense that can get in the way of your day-to-day needs like food and water.

A college loan consolidation helps minimize the impact of your student loans by consolidating them into one lower monthly payment. Here's how it works ? you take out a loan that pays off all your existing loans. You pay your new lender at a lower interest rate for a longer term. In the immediate term, you have lower monthly payments, and your lender gets more money over the course of the loan. On top of this, you have only one monthly loan payment, which will seriously help with your monthly budgeting.

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Martin Tan has sinced written about articles on various topics from Credit Cards, Finances and Debt Consolidation. Interested in loan consolidation? Check out and read about. Martin Tan's top article generates over 5400 views. to your Favourites.

Mauinick has sinced written about articles on various topics from Personal Desktop, Phone Cards and Legal Matters. Nick Hurd writes about a variety of topics including finances and refinancing debt including student college loans. More informatioin is available at. Mauinick's top article generates over 4400 views. to your Favourites.