The college or graduate parent with outstanding federal college loans can now enjoy lower monthly student loan payments. Mere consolidation of their federal parent or student loans will enable them to lower their monthly student loan payments by up to 42%.
There are several simple yet effective ways which students may consider for easy consolidation of federal college loans. While consolidating eligible federal college loans, students may be able to extend their repayment term from the standard 10 years to up to 30 years. It will give them more time to repay & as a result they have to pay a typically smaller amount each month.
Here’s an example: Your projected monthly payments on a $75,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years will be $512.
On comparing this $512 to estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years, anybody can notice a huge difference i.e. a reduction of 41.8% in your monthly payment amount. So you can imagine how advantageous it can be to consolidate your federal student loans.
Smart Borrowing with Student Loan Consolidation
Consolidating your eligible federal parent or student loans with the federal student loan consolidation program will bring you all the borrower benefits that are common in NextStudent Federal student loan consolidation:
- One payment for multiple student loans
- Long repayment period
- Lower monthly payments
- Fixed interest rates
- Deferred payments
- No credit checks or co-signers required