One concrete example of government debt consolidation loans is with the students being assisted by the federal government’s programs to immediately pay off their debts. These students normally have student loans, medical bills, and even credit card debt that give them so many worries and problems. It is the great initiative of the Department of Education to get rid of the original federal education loans. What is more marvelous is as part of the Direct Consolidation Loan Program, the government makes a new loan for the consolidated amount of the old loans. As a result, this loan program as well as the Federal Family Education Loan (FFEL) Programs are classified under the Higher Education Act (HEA) and permit government debt consolidation loans.
So how does this work? A new consolidation loan is issued to the borrower who gets rid of the borrower’s existing loans. Afterwards, the borrowers may have made an agreement with the present loans from different lending agencies that have varied terms, arrangements, and repayment terms. Consequently, these government debt consolidation loans make things easier and less complicated for people as they get to pay off multiple loans with just one loan at the same time, making them efficient and effective debt payers at an incredibly lower interest rates. The third wonder of government debt consolidation plans is that the monthly payment amount becomes considerably lower. The fourth wonder is people understand better and clearer the comprehensive term of payback, the accurate interest rate charged, and the payment due date. The fifth and last wonder of this awesome government debt consolidation loans are their four plans for the borrower, which are:
- Standard Plan; Extended Payment Plan;
- Graduated Payment Plan; and Income Contingent Repayment (ICR) Plan
In a nutshell, if you want to go home with the bacon, just do the right thing from the very start. Hit the road now and look for the government debt consolidation loans and I assure you, you will never go home empty handed. Good luck!