Re consolidating student loans
Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.For example, the government’s Pay As You Earn (PAYE) and Income-Based Repayment (IBR) programs allow borrowers to make reduced monthly payments based on financial hardship.But if your income is over a certain threshold, you won’t benefit from these programs.For example, under the Public Service Loan Forgiveness Program (PSLFP), your Direct Loan balance may be eligible for forgiveness after 120 payments if you’ve worked in the public sector that entire time.
Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.
Are there other monetary benefits to consolidating student loans, though? Combining smaller loans into one larger loan can open up opportunities for alternative repayment plans that you may have been unable to access with an unconsolidated loan such as income-based repayment, graduated repayment, and extended repayment.