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Have your college loans gotten the best of you? Maybe its time to consider 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 fluctuate annually. Fluctuations in interest rates affect the amount of monthly payments as well. Sallie Mae college loan consolidations provide a fixed interest rate for the duration of the loan. This creates a secure feeling. Sallie Mae provides the option to increase the time to repay the loan. This flexibility makes for lower monthly payments over duration of the loan. Although, the longer duration means paying more interest over time, this may be an option that will help you as you initially enter the job market. The Sallie Mae loan application process is free. There are no additional fees or credit checks required. Once the consolidation process has begun, existing loans balances are paid off, leading to an improved credit rating. Financial setbacks are a common experience for graduates as they attempt to enter the workforce. These setbacks may lead to late or missed payments at times. Once deferment and forbearance options are exhausted, a consolidation loan can help beat these financial setbacks. A Sallie Mae loan can give you the fresh start you need. Problems mount with defaulting on loans and add to the financial setbacks. Sallie Mae college loan consolidation programs can prevent these setbacks from controlling your life. There are four options for repayment within the Sallie Mae system: Standard, the Extended, Graduated, and Income Contingent. Standard Repayment Plans - offer fixed monthly payment amounts, loan term is limited to a maximum of 10 years Extended Repayment Plans - offer fixed monthly payments, loan terms range between 12 and 30 years and depend on the total amount of the loan approved, lower monthly payments are a benefit due to the extended payment schedule Graduated Repayment Plans - loan terms range between 12 and 30 years, monthly payments are scheduled to increase at two-year increments Income Contingent Repayment Plan - payment amounts are calculated based on annual gross income, family size and total amount of the loan applied for and the loan term is longer (25 years) allowing the payments to be smaller
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