Is a Sallie Mae College Loan Consolidation for you?

Have your college loans gotten the best of you? Consider a Sallie Mae College loan consolidation.

Sallie Mae college loan consolidation program may provide new graduates with options allowing pay off federal education loans and generate a few extra dollars at the end of the month. Sallie Mae combines all existing student loans into a one loan, which often has a much lower interest rate (as low as 4.75%). As a new college graduate, be aware that a few percentage points on interest rates can make a tremendous difference in the monthly payment you will be making. This could leave you with more spending cash for other commitments. A lower percentage rate could mean the difference between eating Macaroni and Cheese and enjoying a healthy meal.

Interest rates on federal student loans can change annually. Changes in interest rate also affect the monthly payment. With a Sallie Mae college loan consolidation, the interest rate is fixed for the duration of the loan. This will leave you with a secure feeling. Sallie Mae provides the opportunity to increase the length of the loan, which results in lower monthly payments over a longer period of time. While this may seem to be the best option, especially just entering the job market; remember that a longer loan period means you’re paying more in interest over a long time span.

Sallie Mae loan applications are free and there are no fees or credit checks required. Once the Sallie Mae college loan consolidation process has begun, existing loans balances are paid in full. This leads to a better credit rating.

It is common for graduates to experience financial setbacks while entering the workforce leading to late or missed payments at times. When deferment and forbearance options have been exhausted, consider a consolidation to clean the slate. A Sallie Mae loan may be the fresh start you need. Defaulting on one or more loans can create many problems. A Sallie Mae college loan consolidation program application

Four options for repayment are available under the Sallie Mae program: Standard, Extended, Graduated, and Income Contingent.

The Standard Repayment Plan – fixed monthly payments, maximum loan term is no more than 10 years

Extended Repayment Plans – provides fixed monthly payments amounts, standard loan duration for repayment ranges between 12 and 30 years, which is dependant on the total amount of the loan, and lower monthly payments are a benefit of the longer repayment schedule

Graduated Repayment Plans – standard loan duration ranges 12 to 30 years, plan increases monthly at two-year increments, payments remain fixed at the new larger amount

Income Contingent Repayment Plan – payments are calculated on various factors and include annual gross income, family size and total amount of the consolidation loan and the loan term is longer (25 years) allowing the payments to be smaller