Government Assisted Consolidation Loans

Government assisted consolidation loans are available only to assist borrowers combine their Federal education loans. These loans are called Direct Consolidation loans and are financed by the U.S. Department of Education.

They act like other consolidated loans in that you end up with one lender who is the government, one loan and one monthly repayment making it easier to manage.

Advantages of government-assisted consolidation loans include:

They offer low interest loans which are easy to get and this makes your debts ultimately easy to manage and reduce. You can take up the loan early to lock in record low interest rates.

You can choose from four options to pay back the loan and the terms are flexible. Based on your needs, you can make the adjustments necessary to make the payments lighter on your pocket. The monthly repayment will have to consider the income that you receive, the size of the family and the amount of the loan.

You don't have to pay any admin or service fee for the consolidation. You don't have to worry about minimum payment requirements either. At the same time you can put off your payment for up to 3 years and have a grace period of six months before you begin with your repayments. Depending on your debt amount you have to repay your loan for a period of 12-30 years.

As mentioned before, in order to qualify, you must have an outstanding federal student loan. In addition, your income, family size and balance of your existing loans will be evaluated.

To reiterate, below are the advantages of government assisted consolidation loans: - deferred payments of up to 3 years - grace period of 6 months - no consolidation fees - extended loan payment of up to 30 years