Four Plans of Consolidating Student Loans
When thinking about consolidating your students loans, there are four plans for direct student loan consolidation. You can review them one by one to investigate the best one for your needs.
Standard Repayment Plan is the first one you can take. It gives you a fixed monthly installment for up to 10 years.
The second plan is Extended Repayment Plan which also sets fixed monthly installment but pay back period can be in between 12 to 30 years. By extending pay back period, you can reduce your installment as it is spread on more installments. However be warned that paying a loan in longer period add extra amount as interest so you would be paying more than what you got as loan.
Graduated Repayment Plan is the third one you can consider. This direct student loan consolidation plan comes with pay back period between 12 to 30 years. The benefit of this plan is that your installment grow as time passed by. This means you will have to pay lower installments in start and then it will increase every two years.
The last but not least plan is Income Contingent Repayment Plan. This is well suited plan if you have a job or family. This plan allows you to set monthly installment as per your annual gross income, family size and total student loan debt. The pay back period can be up to 25 years.
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