No problem. The basic information about it, is that you have the standard repayment plan where payments are fixed and made for up to 10 years between 10 and 30 years for those loans which are in consolidation.
Do you know why's that?
Yeah, I know. I read somewhere that this action will allow me to pay the least amount of interest in my loan, is that right?
That's correct. You are very well informed.
Is the same for those Direct Consolidation or FEEL Consolidation loans?
Not quite. In those cases, the length of your repayment period will be determined depending on the amount of your total education loan indebtedness. That includes the amount of your consolidation loan and your other student loan debt.
Oh, i see. Kind of complicated, huh?. Oh, well. Say, whenever i get a loan, i can choose how i want to repay it, right?
Certainly, you can. You have options for doing the choosing when is time to repay your loan. That's when you make use of the plans.
SO, lets say i go for these plans under the standard repayment thing, What do i get there?
To be more specific there, your payments by the month would be in a fixed amount of at least $50 each month and made for up to 10 years for all loan types. However, Direct Consolidation and FEEL Consolidation loans are excepted.
Then, to check sure this. I'll save money for abiding this standard plan, I'm right?