QWhat Are My Repayment Plan Options After Loan Consolidation?
AThe repayment term is 10 to 30 years depending on the amount of your total student loan debt, including any federal loans you are consolidating and private loans not eligible for consolidation. 1. Standard - Fixed monthly payment. The final payment may be slightly larger or smaller. 2. Graduated - Your payments will be smaller in the beginning of repayment and gradually increase every 2 years over the course of the repayment period on the loan. 3. Income Sensitive - The amount of your payments will be adjusted annually between 4% and 25% of your expected total monthly gross income. After your lenders are repaid and your Federal Consolidation Loan is originated, you will receive a packet of information from your loan servicer. It will include a worksheet to help you calculate your estimated monthly payment and instructions about what supporting material is required. If you are consolidating jointly with your spouse, payments will be based on your total household income from all sources. Income sensitive payments are only in effect for 12 months at a time. Each year you must recertify your income and provide supporting documentation. 4. Extended - If you have loans totaling in excess of $30,000, you may repay over a 25-year period on a fixed or graduated payment plan. If you choose the income sensitive plan, you must have at least $40,000 in debt to qualify for a 25-year repayment period. If you have debt in excess of $60,000 and wish to repay over a 30-year period, you can select the Standard, Graduated or Income Sensitive plan.