What repayment options are available to borrowers on their new consolidation loan?
Standard (Level), Graduated, Income Sensitive (in Federal Consolidation), Income Contingent (in Direct Loan Consolidation), and Extended Repayment options should be available to borrowers who consolidate in either Federal or Direct Loan Consolidation (with the differences noted above). Borrowers may be able to switch repayment plans should their financial circumstances change (contact your loan servicer in this regard, as some restrictions may apply). Just a few reminders about repayment options with consolidation loans: • First, as referenced earlier, FFEL Stafford borrowers who began borrowing prior to October 7, 1998 may have to consolidate in order to have access to extended repayment terms beyond ten years. • Second, please also remember that just because you consolidate your loans does not mean you have to take more than 10 years to repay. For many years, consolidation has been associated with extended repayment terms. However, such does not have to be the case, especially with s
