Loan Consolidation: What is Sallie Mae College Loan Consolidation?
Have your college loans gotten the best of you? Maybe its time to consider loan consolidation.
Sallie Mae college loan consolidation is a great option for many new graduates to pay off their federal loans and maybe even end up with a few extra bucks in their pockets at the end of the month. With this type of loan, Sallie Mae combines all of your existing student loans into a single loan, most often with a much lower interest rate (as low as 4.75%). If you've just graduated college I'm not going to insult you by explaining the tremendous difference a few percentage points of interest can make in your monthly payment. In terms most of you can understand, it might mean the difference between mac & cheese or an actual 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.
Applying for a Sallie Mae loan is free - no fees and no credit check. Best of all, when your Sallie Mae college loan consolidation is started, your existing student loans will be immediately paid off, resulting in a better credit score.
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
The Extended Repayment Plan
* Fixed monthly payments
* Loan term is between 12 and 30 years and depends on the total amount of the loan
* Lower monthly payments
The Graduated Repayment Plan
* Loan term is between 12 and 30 years
* Monthly payments increase every two years
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
* Loan term is 25 years