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People find consolidation plans as an efficient way of managing several loan accounts. Students can also use this method in their federal student loans as well. There are four kinds of consolidation plans for these loans, and everybody can avail for any of these options.

First off, there is the standard consolidation plan. With this, a student that applied for it is expected to repay the loan in a maximum of 10 years. The monthly amount is fixed, so it is basically the most practical method for students with a tight monthly budget, as they wouldn’t have to worry about considering any increases for the remainder of the repayment period.

For those who cannot afford to pay the preset value of the aforementioned plan, students can go with an extended payment plan. This will allow you to break down your payments into smaller amounts for an extended period of 15 to 30 years, with the monthly payment being dependent on how much the loan is.

Another option that prolongs the repayment period is the graduate payment plan. As the name implies, this is meant for students who plan on repaying the loan after graduation, when they are already part of the working class. It is also suitable in this case because the monthly payments gradually increases every couple of years, so employed former students can work in their salaries that would also ideally go up in time.

Lastly, there is the complicated income contingent payment plan for those who are employed in low-paying jobs like those focused in public service. The monthly payments take into account the former student’s generated income, annual gross of their families and several more financial matters like other loans or mortgages. It adjusts accordingly with any changes in the values of the considered factors.

Every option listed above works best under different circumstances. It is actually up to the student to pick which consolidation plan they can fully utilize. With the right choice, repaying the loan will definitely be easier and more efficient.