Student debt consolidation allows you to refinance your student loans at lenient terms and conditions. All your loans are consolidated into a single package. You have to pay fixed monthly payment on a single loan with increased probability of reduced interest rates on your loan.

However, consolidation is not the only way to get relief from your debts. You can also avail Extended Repayment Plan (ERP) to reduce your debt burden. This extremely valuable plan allows reduction in financing the debt by as much as $1,000.

How Extended Repayment Plan (ERP) Reduces Your Debt Burden?

Extended Repayment Plan (ERP) is a government-backed loan-refinancing plan to give relief to students suffering from the burden of debts. It is similar to standard repayment plan with the exception that you can extend your repayment period to up to 25 years. Standard repayment plan, on the other hand, allows extending the repayment period up to 10 years only.

Furthermore, eligibility of ERP does not depend on your income or debt. Even if you have high income and low debt, you can avail ERP to significantly reduce monthly payments on your debts. You have to pay lower monthly payments which can get as low as interest-only!

Eligibility Requirement and Constraints for ERP

You should fulfill the certain requirements if you want to avail the option of ERP to get relief from your student debt.

  1. Net outstanding balance should be above $30,000 to become eligible for student loans. This includes all federal loans such as Federal Consolidation Loans, PLUS (Parent and Graduate) and Stafford (subsidized and unsubsidized).
  2. Federal consolidation loan should be obtained on or after October 7, 1998.
  3. At least one of the loans should be Federal Family Education Loan Program (FFELP).

Additionally, Extended Repayment Plan (ERP) is subject to certain constraints. Some of the constraints include the following.

  1. Federal Family Education Loan Program (FFELP) should be obtained after October 7th 1998.
  2. Publish Service Loan Forgiveness (PSLF) is not eligible for this program.
  3. Consolidated loans containing private loans and certain other loans are ineligible for ERP.


ERP is no doubt a great debt relief program for students burdened with the weight of their loans. Yet it is not the only option available for students to get relief from their debts. There is another option for students who do not yet have a stable job to finance their debts even under softer terms and conditions.

Graduated Repayment Plan

Graduated Repayment Plan (GRP) is ideal for students who do not have a steady job at the moment but expect to secure a lucrative job in the near future. In this student debt relief program, the monthly payment varies but has a fixed time period of 10 years. You start off by paying minimum monthly payments in lieu of your loans. This payment will increase after every 2 years in accordance with the 10-year time period. However, the catch with GRP is that your overall interest payment also increases with the extension of repayment period.

Student debt consolidation plans require careful understanding of the requirements and constraints to obtain relief from the loans. It is strongly recommended that you seek expert guidance and advice to consolidate your loans successfully.

You are welcome to contact us in case of any confusion relating to the debt consolidation program. We will gladly assist you and provide further guidance regarding the debt consolidation process.