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The Advantages of 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:
The interest on these loans is usually low. These loans are generally easier to get too and hence make your debts easy to manage and reduce also. You can decide on taking the loan early to lock in record low interest rates.
When it comes to paying back the loan, you have four choices to pick from, and all of these are flexible depending on your needs. What the monthly repayment has to put into consideration is the income you get, the family size and the amount you have borrowed.
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 earlier, you must have outstanding federal student loans. Then you must qualify based on your need which is evaluated on the basis of your income, family size and the total outstanding balance of your federal student loans.
Below are some of the benefits of Government Assisted Consolidation Loans:
- the ability to defer payments up to 3 Years
- no payments for the first 6 months
- no loan origination costs or fees for consolidation
- extended loan payment period of up to 30 years

Article Source: http://articles.yournetguru.com

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