A student loan consolidation makes repayment seem more manageable because you only have one loan and one payment.  You also have other ways for consolidating student loans such as a direct consolidation loan that offers many repayment options depending on your finances.

You can consolidate your student loan directly with the US Department of Education through a direct consolidation loan.  They offer a number of payment options for you to choose.

If you need the flexibility to change your payment plan due to changes in your financial situation, the direct consolidation loan is what you need.  It is designed for just his purpose.

Another repayment plan is called the standard repayment plan.  With this plan you will settle on a fixed monthly amount until you have paid the balance in full.  Your monthly payments can start out as low as $50.00 per month for 30 years depending on the amount you owe.

The extended repayment plan goes up to 25 years but to be eligible you have to have a loan amount that is more than $30,000.  You can have a fixed monthly payment of $50 until you have paid off the whole loan or pay the interest first and settle the remaining amount later.  For the latter option, your payment will start out very low and will increase every two years.

The income contingent repayment option determines your monthly payment based on your annual income, balance owed and the size of your family.  The loan term may be extended for up to 25 years.

The direct consolidation loan does not have specific requirements for you to qualify, and there is no fee.  You only have one lender to deal with which is the U.S. Education Department.

You now have all the information you need to know about the direct consolidation loan payment options.  This should help you make a more informed decision about the program and let you compare with other consolidation loan programs that are available.

By: Ryan Wilkins

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