Basically, for every student who has student loan deal, sometimes payments under Standard Repayment Plan, for instance, are too much to handle, so it is the same for you if you are a student in such a situation. That is why there is an option. Opting for an Extend Repayment Plan can give possibility for reducing your payments. This give you more time to pay back your student’s loan deal.
Like in many other cases this possibility has its own advantages but also disadvantages and that is what you should be aware of. For example, when you are under this plan, which means that you are federal student, and you are borrower of this kind of deal, you can make fixed or graduated payments for your loan up to 25 years. Also if you are able to extend the repayment period, it can help you to lower your payments and to make them much easier to manage. This was positive aspect of Extend Repayment Plan. On other hand, if you are doing this, that means that you will be obligated to pay a lot more in interest over time and your loans won’t be able to have option that will be forgiven. Of course, this opportunity rises for those students who have more than $30,000 in student loan debt.
How to consolidate your loans? If you have multiple federal loans, you should consider consolidating your federal student loans, in order to reduce student loan payments. Using Direct Consolidation Loan, you can make easier for to repay your debt trough streamlining and lowering loan payments. Positives about this kind of loan deal are that you can have on monthly payment, instead of multiple payments, and that you can extend period of repayment up to 30 years and lower the payments. Negatives are that you will pay more in the interest over time and lose some borrower benefits such as loan forgiveness and interest rate deductions.
To conclude, these are some of the possibilities by which you can reduce or lower your student loan costs, but before you apply for them, you should take all pros and cons for this kind of deal and be aware of all obligations that you will take. Put everything together and see if you are able to manage it – if not, don’t go into this “adventure” otherwise you could regret it.