Consolidate Your Student Loans
Congratulations, you have graduated! Now it is time to get off on the right
financial foot. After your Federal Stafford loan 6-month grace period has ended,
you will need to begin making payments on your student loan(s). Regardless of
where you originally got your loan, you may be able to save by consolidating
your loans with a fixed-rate Consolidation Loan at MPECU.
A
Consolidation Loan could benefit you in three important ways:
1. Lock into a Fixed Rate
Most
student loans have a variable interest rate that changes with the 91 day T-Bill
rate every July 1. By consolidating your student loans, you can lock into a low
fixed rate for the life of the loan. This means that even when interest rates go
up, you pay the same low rate that you lock into today. And if you consolidate
your loans while in your grace period, you can save 0.6% in interest.
2. Reduce your Monthly Payments
If you have more than one student loan, you can reduce your monthly payments by consolidating your loans. Use the Federal Loan Consolidation Calculator to estimate your loan payments. To use the calculator you will need to know the amount and interest rate of your current loans. If your loans are with MPECU you can find that information at mygreatlakes.com. If your loans are with another lender, contact them for that information.
3. Choose from Three Flexible
Repayment Plans
·
Level
Payment Plan
– This option
provides equal monthly payments over the maximum repayment period allowed.
·
Graduated Income Sensitive Payment Plan B
– This option allows for interest-only payments for the first one-third of the
repayment period. The remaining two-thirds of the repayment period, you pay
level monthly payments.
·
Graduated Income Sensitive Payment Plan C
– This option allows for interest-only payments for the first quarter of the
repayment period. The second quarter, you pay level monthly payments on the
balance, which are calculated using the original maximum repayment period
allowed. For the last half of the repayment period, you pay level monthly
payments, which are recalculated using the remainder of the original maximum
repayment period allowed.
Want More Information?
A variety of tools
for calculating the cost of your loan and examining the potential benefits of
loan consolidation are available on
mygreatlakes.com.
It’s your resource to deferment, forbearance, forms, and a glossary of financial
aid terms, contact information, and lots of other resources to help you manage
your loans. You'll also find help if you ever have trouble making payments −
though we hope you'll never need it.
The Frequently Asked Consolidation Questions can also provide more details to help you determine if a Consolidation Loan is right for you. Or call the credit union at 218-336-1800
Apply for a Consolidation Loan
Today
Log on to
www.mygreatlakes.com
, go to Borrowers and click
“Consolidate My Loans” to access the Consolidation Loan Assistant.
The Consolidation Loan Assistant will guide you through the Federal
Consolidation Loan Application and Promissory Note and provide you with the
opportunity to sign and submit your application electronically.
Great
Lakes Higher Education Loan Services, Inc.
Make Payments Conveniently
Online
You can
log on to www.mygreatlakes.com to view
your account information and make payments on demand from your bank account at
any time. After you log in, choose My Loans, then Internet Borrower Inquiry
Service to get started.
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