Government debt consolidation loans are government loans that are available to you if you are in financial need and can meet the requirements. The way it works is it consolidates all your small loans into one big loan that will lower your monthly payments. You would have just one payment instead of many high interest loans. There are numerous types of government debt consolidation loans.
Some of the US government debt consolidation loans are the Stafford Loans, which are managed by the Department of Education. You can have the loans subsidized or unsubsidized, and are administered as Direct Loans or Federal Family Education Loans (FFELs). As a student, you can consolidate the Stafford (Direct and FFELs) Loans after you graduate or leave school, and the direct consolidation loans can also be procured if you attend school less than 50% of the time.
Choices of government consolidation loans
- The Standard Payback debt consolidation loans are not based on your income and your payment is set and does not go up or down. This is the fastest and most clear cut way to pay money back.
- Graduated payment government debt consolidation loan is for people who do not have a lot of money upfront but they expect their situations to change. The initial payments are low and increase as your situation gets better.
- The income contingent debt consolidation loan is bases on how much money you make and as suggested is income based. The more you make the more you pay and vice versa. This is a great choice if your income is flexible and you cannot commit to a certain amount every month because your job is not secure.
- Is a government debt consolidation loan right for you?
- A government loan offers you all the services that a bank offers you and even financial counseling.
- Government debt consolidation loans give you trained financial counselors to answer your questions and help you on the road to financial security.
- A government loan will probably have a better interest rate and will offer you a variety payment plans.
- You are allowed to make lower monthly payments.
- When you have outstanding debt you get all these harassing phones calls and this loan would resolve this issue.
If you have financial issues and you meet the requirements for a government debt consolidation loan it would be better for you to get a government loan. Keep in mind that when you get one of these loans there will have to be financial need and there are hoops to jump through to obtain one. However, if you are in financial trouble this can be the best possible solution for your family.
With this loan you can save and rebuild your credit while reducing your monthly payments. Consolidating your debt is a smart way to repair your credit and financial standing. The government can help you do this all you have to do it apply.