06.29.07 | Repayment Term Options
Many people consolidate to get the lowest monthly payment possible for their federal student loans. The reason why consolidation gives you a lower monthly payment is because it extends the term of the loan. The chart below shows the maximum repayment term you are eligible for. The term is based on the total of all your student loans.
| If your total education debt is | Your maximum repayment period is |
|---|---|
| $10,000 – $19,999.99 | 15 years |
| $20,000 – $39,999.99 | 20 years |
| $40,000 – $59,999.99 | 25 years |
| $60,000+ | 30 years |
Now keep in mind that there are no penalties for early repayment, so by making larger payments you may pay off your loan sooner. This is because all additional payments go direct to your principal. Use our calculator to try different repayment scenarios before choosing to consolidate.
Hopefully this blog helps you decide if consolidation is something you could benefit from!
The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans
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