| Are your debts becoming too much of a burden for | | | | which can allow consolidation loans. One program is |
| you? Well, your country can help you deal with this | | | | Direct Consolidation Loan Program and the other is |
| crisis in the form of government debt consolidation | | | | FFEL or Federal Family Education Loan program. |
| loans. | | | | In the program, the Direct Consolidation Loan |
| Although, there are many debt consolidation loans | | | | program, the US Department of Education helps |
| that you can consider to can help pay multiple | | | | students through debt consolidation loans to pay off |
| creditors through a single monthly payment. Your | | | | education loans. After that, a new loan is issued to |
| best option still may be the several government | | | | the student which contains the consolidated amount |
| backed debt consolidation loans that the federal | | | | of all the old loans. |
| government offers its citizens due to various | | | | In case of the FFEL or Federal Family Education Loan |
| reasons. | | | | Program, the borrower is provided with a new |
| What are Government Debt Consolidation Loans? | | | | consolidation loan which can be used to pay off any |
| These loans are made available by the federal | | | | loan that the student might have and not just |
| government to help you pay multiple loans and | | | | educational loans. |
| creditors using similar principles of debt consolidation | | | | Government Student Loan Repayment Plans |
| like any other private program. The loan allows you | | | | The government debt consolidation loan programs |
| to consolidate multiple loans into one. This way you | | | | offer four different plans to the borrower, they are: |
| only need to make one single payment each month | | | | 1. ICR or Income Contingent Repayment plan |
| rather than three or four. | | | | 2. Extended payment plan |
| As you already know, in most cases the loans are | | | | 3. Graduated payment plan and |
| high-interest unsecured ones; therefore converting | | | | 4. Standard plan |
| them in to secured loans is bound to be beneficial for | | | | Each plan provides the borrower with different |
| the borrower as it leads to low interest rates. They | | | | features to meet the requirements of the individual. |
| save you money and make your financial planning and | | | | This provides flexibility which is a key factor in any |
| budgeting easier. | | | | debt consolidation program. |
| Debt Consolidation for Federal Student Loans | | | | Consolidating your debts can help simplify your |
| Students who have multiple federal student loans to | | | | repayment process, as all of your existing loans may |
| fund their educational expenses can benefit from | | | | not have similar payment dates and terms. You pay |
| government backed debt consolidation loans. | | | | back different types of loans with the help of one |
| Government backed loans help make repayment of | | | | single loan. The amount that you would need to pay |
| the loans feasible for student or parents - without | | | | every month should be lower and the pay-back may |
| the hassle of having to deal with multiple loan | | | | also get stretched to ease the repayment process. |
| payments every month. | | | | At the end of it all, getting a government debt |
| There are many loans offered by the government | | | | consolidation loan also increases the chances of |
| that are designed to help out students. There are | | | | paying back your loans on time. |
| two programs under the Higher Education Act (HEA) | | | | |