Government Backed Debt Consolidation Loan
Few people are aware that the federal government offers debt consolidation loans.
These loans are available for individuals who have student loans.
If you are a graduate and have multiple student loans coupled with credit card debt and even medical bills this is a program you will surely want to look into.
Federal Debt consolidation loans, just like other consolidation options allow you to combine several monthly payments into one.
This makes managing your debt easier and also can assist you in preventing future debt.
In some cases it can even save you from filing for bankruptcy.
Let's take a look at how these loans work.
These loans are made possible by the Higher Education Act.
Many students find themselves with multiple student loans all with different interest rates and pay off dates.
This can be very cumbersome and confusing.
If you qualify for the government's direct consolidation loan program you can combine all of your student loans into one.
Once the consolidation is complete you will have one monthly payment which can save you time and money.
There are many advantages to having a government backed debt consolidations loan.
First, you almost always will get an interest rate lower than what you are currently paying.
This in turn makes your monthly combined payment less than what you were currently paying on your multiple loans.
To help ease financial strain, under most circumstance you can also extend out your combined loan over a greater period of time than the original loans.
If you believe you are eligible for a government consolidation loan you will want to take a look at the four specific plans you can choose from.
These include the standard payment plan, the extended payment plan, the graduated payment plan and the income contingent repayment plan.
As you can see, if you qualify for one of these debt consolidation loans offered by the government, you most likely will want to take advantage.
Starting early in life to manage your debt is wise.
Learning to manage your debt and avoid future debt are keys to living a financially stress free life.
These loans are available for individuals who have student loans.
If you are a graduate and have multiple student loans coupled with credit card debt and even medical bills this is a program you will surely want to look into.
Federal Debt consolidation loans, just like other consolidation options allow you to combine several monthly payments into one.
This makes managing your debt easier and also can assist you in preventing future debt.
In some cases it can even save you from filing for bankruptcy.
Let's take a look at how these loans work.
These loans are made possible by the Higher Education Act.
Many students find themselves with multiple student loans all with different interest rates and pay off dates.
This can be very cumbersome and confusing.
If you qualify for the government's direct consolidation loan program you can combine all of your student loans into one.
Once the consolidation is complete you will have one monthly payment which can save you time and money.
There are many advantages to having a government backed debt consolidations loan.
First, you almost always will get an interest rate lower than what you are currently paying.
This in turn makes your monthly combined payment less than what you were currently paying on your multiple loans.
To help ease financial strain, under most circumstance you can also extend out your combined loan over a greater period of time than the original loans.
If you believe you are eligible for a government consolidation loan you will want to take a look at the four specific plans you can choose from.
These include the standard payment plan, the extended payment plan, the graduated payment plan and the income contingent repayment plan.
As you can see, if you qualify for one of these debt consolidation loans offered by the government, you most likely will want to take advantage.
Starting early in life to manage your debt is wise.
Learning to manage your debt and avoid future debt are keys to living a financially stress free life.
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