Government,Debt,Consolidation, finance, share, loan Government Debt Consolidation Loans

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Government Debt Consolidation LoansThe government debt consolidation loans are given through various government programs to pay off multiple loans. With the help of these government debt consolidation loans the person is required to pay just one monthly payment in comparison to the multiple payments that the debtor would have been making to different creditors.The government provides different programs for debt consolidation especially for students who need to consolidate their educational loans. With these government debt consolidation loans it becomes easy for the student to get out of debt fast. Students usually have student loans, credit cards and medical bills to pay, which keep accumulating and result in debt. In such cases the Department of Federal Education pays off the previous educational loans and would issue a new loan for the consolidated amount of the loans. This comes under the Direct Consolidation Loan Program. Students who apply for the government loan consolidation programs can get the advantage of either paying a lesser amount towards the student loan or they can increase the duration of repayment. When taking a government debt loan consolidation the student can consolidate all the student loans into a single payment. The federal loan consolidation would work regardless of the fact whether you have taken the loan under different programs. The government debt consolidation loan has typically four payment options and you can take the one according to your needs. Out the four payment plans two of these plans would take into consideration your income. The four repayment plans are mentioned as below: Standard Repayment Plan: With this government debt consolidation loan repayment plan you can pay off the loan debt over a period of 10 years. The interest rates on these loans are fixed and this would make your monthly payments also fixed. The payments for these loans are calculated by dividing the loan amount in that period of time at a fixed rate. Extended Repayment Plan: With this repayment plan the payments can be extended for a period of 30 years. The duration of payment depends on the total amount that is borrowed. But with this plan if you extend your payment you would end up paying more interest rate because the plan has a fixed interest rate. But on the other hand you monthly payments would be less and you would be able to handle it easily. You can easily decide on the amount that you wish to make every month. Graduated Repayment Plan: With this plans you can pay the loan in similar way as the extended repayment plan but the only difference would be that your monthly payments would increase every two years. If you take this option you should make sure that you ask the lender how much would the payments increase by. Income Repayment Plan: with this plan the monthly payments are not fixed. It would be decided based on several factors like the amount that you are supposed to pay, the income level, the size of your family, etc. the repayment period on this plan can go up to 25 years. With the help of government debt consolidation loan the student can pay off the loan at flexible terms and lower interest rates. It is a cost effective way of managing debts. The student is not required to make multiple payments and this makes it easier for the student to manage the payments. Applying for the government debt consolidation loans: Applying for a government debt consolidation loan is very simple. The borrower is required to fill out a form and submit it with the lender. There are a number of private lenders who make these forms available on the Internet also. With online forms you can easily fill it and submit it on the site of lender. With online loans it becomes easy for the student to fill the application. Besides the online debt consolidation loans have lower interest rates as compared to the conventional debt consolidation loans offered by traditional lenders. When taking online debt consolidation loans you should compare the offers from various lenders. By comparing the offers you can easily get to know the amount that you would get and the interest rates that you would qualify for. Most of the online lenders usually have a pre-qualification system on their web sites and this would help you in assessing the amount that can b obtained and whether you are eligible to take a debt consolidation loan. Article Tags: Government Debt Consolidation, Debt Consolidation Loans, Debt Consolidation Loan, Government Debt, Debt Consolidation, Consolidation Loans, Consolidation Loan, Loan Consolidation, Repayment Plan, Interest Rates, Monthly Payments