Maria Mbura asked: 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.
The government assisted consolidation loans offer several advantages:
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 have a variety of four choices of plans of how to repay the loan and the terms a flexible. These plans take into consideration the income of the borrower and even his changing needs. Your monthly repayments will take into consideration your income, family size and loan amount
Another benefit is you don’t have any minimum payment requirements and the consolidation is free.
You can also defer payment for up to 3 years and have a grace period of six months before you start your repayments. The loan has a repayment period of 12-30 years depending on your debt amount.
Not everybody is qualified for the Direct Consolidation loans and not all loans are considered.
An online research can determine whether you qualify for this type of loan.
It’s advisable to explore your government assisted consolidation loans options which could help you save and pay off your debt faster.
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