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Where Do I Send My Federal Taxes

By Roy Thomsitt

For American students, the U.S. Government came up with a planthat can help a student manage their student loan debt. The planthey came up with is called a Federal Direct Consolidation Loan.It does not matter if you are a recent graduate student, wellinto your career already, still at school, or in your graceperiod for repayment of a student loan. For any of those studentcategories, a Federal debt consolidation loan may be applied for.

Students successful in their application for a federal debtconsolidation loan may reduce the amount they need to repay eachmonth, or increase the time that they have to pay off theircurrent debt.

How Does a Federal Debt Consolidation Loan Help a Student PayOff Their Debt?

For a student who has student loans under several differentprograms, bringing them all together under one direct FederalDebt Consolidation Loan can make your debts easier to manage. Bycombining all of your loans into one, you're only responsiblefor making one payment to one lender - the U.S. Government. Tohelp make the option of debt consolidation more attractive,there are four flexible payment plans available, including twothat which take income and/or income expectations into account.

The Federal Debt Consolidation Loan is Available to Help youManage your Student Debt.

Student loan debt is not something that you want dragging atyour feet like a ball and chain. It provides a good opportunityfor students to learn to manage their finances. Even if you arestill at school, it is a good time to learn to manage your debt.That will hold you in good stead as a consumer long into thefuture. For example, if you choose to consolidate all yourstudent debts into one before you leave school, you can lock inan interest rate that as much as .6% lower than if you attemptto refinance later, after you have left and are no longer astudent.

For more how a Federal Direct Consolidation Loan can help loweryour repayments, and manage your student debt, you can visit theDepartment of Education's web site. Once there, you can make useof their online debt calculator at https://loanconsolidation.ed.gov to estimate your projected monthly payment under thevarious plans.

Can a Federal Direct Consolidation Loan help you manage yourdebt?

There could be reasons why debt consolidation is not the bestsolution for any particular student. If a student is close tothe end of their repayment term, for example, it may not beworth the work to consolidate. Prolonging the life of your loanis likely to increase the amount you pay overall. If you canafford the higher monthly payments to pay off the debt sooner,you can ultimately save money by doing so.

If, however, you are sure that a Federal Direct ConsolidationLoan will be to your benefit, you still need to be eligible forthe program. The eligibility guidelines can be found atloanconsolidation.ed.gove/borrower/beligible.html In addition,the list of loans that are eligible for consolidation can beviewed at: loanconsolidation.ed.gov.borrower/bloans.html

Which Federal Student Loan Consolidation Plan is the mostsuitable for you?

Here are the 4 consolidation loan consolidation plans that areavailable to choose from:

Standard: The standard repayment plan is fixed-rate, and runsfor a maximum of 10 years. The minimum monthly payment is $50.

Extended Repayment Plan: this is a fixed rate plan, withpayments extending over the course of 12-30 years. Payments area minimum of $50, and the life of the loan is dependent on thetotal amount of the debt.

Graduated Repayment Plan: Under the graduated plan, paymentsstart low and increase, generally every two years. The length ofthe repayment period can vary from 12 right up to 30 years.

Income Contingent Repayment Plan: The monthly payment is basedon a borrower's annual adjusted gross income, family size andthe total amount of direct loans.

If your student loan debt is out of control, or could be bettermanaged, it is worth paying a visit to: https://loanconsolidation.ed.gov to see how the federal government can help you with adebt consolidation loan for students

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