Direct Loan Consolidation allows borrowers of multiple student loans to consolidate and bring them under one umbrella making it simple and easy for monthly repayments. One of the most distinct advantages of this loan is its repayment options that are highly flexible and renewed deferments as compared to Private Loan Consolidation.

You can choose from a range of repayment plans according to your requirements –

Standard Repayment Plan – Under this monthly repayment plan, a fixed amount will have to be paid by you until you complete paying the entire loan amount. Based on your total education debt, you will be paying a minimum amount of $50 as monthly repayment for a time period of between 10 and 30 years.

Graduated Repayment Plan – Under the graduated repayment plan for direct loan consolidation, you will have to pay an amount of at least the interest accrued every month. Initially, the payment amount is low and gradually increases every two years. The total loan period is between 10 and 30 years based on the total debt.

Extended Repayment Plan – If the balance on direct loan is above $30,000, your direct loans servicing center will work out an extended repayment plan. Under this plan, you will be offered two different choices.

The first option is to pay a fixed amount of repayment every month until you complete the loan amount. Payments will be a minimum of $50. The second option is graduated payment where you will have to pay a minimum payment of the interest accrued on your loan or $50 whichever is greater. Payments are gradually increased every two years after starting low.

Income Contingent Repayment Plan – ICR or Income Contingent Repayment Plan bases the monthly repayment amount on the annual income of the borrower, size of family and direct loan balance. This direct loan consolidation repayment is offered for a term of 25 years.