Student Loans Consolidate to Cut Monthly Payments

If you’re a graduate or college parent withoutstanding federal college loans, you may be able to lower your monthly student loan payments by up to 42% simply by consolidating your federal parent or student loans. When you consolidate your eligible federal college loans, you may be able to extend your repayment term from the standard 10 years to up to 30 years. With more time to repay, the amount you have to pay each month will typically be smaller.

Here’s an example: Your estimated monthly payments on a $75,000 Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $512.

Compare that $512 to estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years.
That’s a 41.8% reduction in your monthly payment amount — just by consolidating your federal student loans.

Smart Borrowing With Student Loan Consolidation

When you consolidate your eligible federal parent or student loans with the federal student loan consolidation program, you could qualify for all the borrower benefits that come with a Federal student loan consolidation:

* No credit checks or co-signers required
* Fixed interest rates
* Lower monthly payments*
* Longer repayment terms
* One payment for multiple student loans
* Deferred payments†

Lock In Your Student Loan Payments With a Fixed Rate

Although federal PLUS loans and Stafford loans are currently issued at fixed interest rates, PLUS and Stafford loans issued prior to July 1, 2006, are variable-rate student loans. The interest rate on these college loans adjusts every year on July 1.

If you’re a PLUS or Stafford borrower with one of these variable-rate student loans, your monthly payment amount could fluctuate from year to year, depending on your adjusted rate. When interest rates rise, your monthly student loan payments may also go up.

Student loan consolidation replaces your variable-rate student loans with a fixed-rate consolidation loan and puts an end to rate increases and rising payments.

Make Your Student Loan Repayment Easier to Manage

If you have multiple college loans in repayment, say goodbye to the hassle of multiple bills, multiple due dates, and multiple monthly payments to multiple lenders.

With the federal student loan consolidation program, you can bundle all your eligible federal parent or student loans into a single fixed-rate consolidation loan with just one monthly bill, one lender, and one monthly payment that’s fixed for the life of your loan.

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