Government assisted consolidation loans save you time and money. If you needed to borrow money for school, there is a way to lower your monthly payments, without extending them too far. For many, borrowing money was the only form of federal student financial aid that was available. Government assisted consolidation loans are provided by the department of education. You are obligated to pay these back, just like you are with most other programs.

Qualifications For Government Assist Loans:

To qualify for government assisted consolidation loans, you will need to meet certain income restrictions and guidelines. In addition, the size of your family, and current amount owed on your student accounts will be taken into consideration. Generally speaking, the guidelines are fairly liberal, so there is a good chance you can qualify for these types of programs. Be sure to do some research, and determine you qualifications before you apply for government assisted consolidation loans, or you will be denied if you don't meet the criteria. There's really no sense in going through the application process with the department of education if you won't qualify for the program. To avoid this in the future, be sure to look at ways to get free college money.


There are many benefits to government assisted consolidation loans. You may want to look at the pros and cons, and then decide for yourself if they are right for you. Here are some of the benefits to government assisted consolidation loans that may be of interest to you. You will note that some could actually be considered a danger, if not used properly. It is really up to the borrower to ensure that they are responsible.

Longer terms: In many cases, you can stretch your payments for up to 30 years when you take out government assisted consolidation loans. This can be a good thing, or a bad thing, depending on how you look at it. For those starting out, it is usually good, since the payments will be lower, allowing a little room to breathe as you get on your feet. Federal government assisted consolidation loans can be used by former students to keep them from falling behind. When you use this type of extended payment plan wisely, it really is a great benefit for the former student, the borrower.

Payment deferral: When used properly, payment deferral is a benefit for government assisted consolidation loans. You can defer your payments for up to three years, in most cases. Be sure you don't abuse this type of benefit, or it will backfire. Government assisted consolidation loans have some pitfalls that you must be careful with. This is one of those things that can actually go either way if you are not careful with how you use it. It's really up to you to use government assisted consolidation loans responsibly. .

First payment delay: You will not typically be required to make payments for the first six months after you take out government assisted consolidation loans. This will give you a chance to find work, and get on your feet before the big student payments begin. Those that are waiting until well after school to get government assisted consolidation loans will likely appreciate the time to get caught up on other bills. If you make payments during this phase, you will really save a lot of money, long term. It's worth doing if you can make a go of it.

No fees: There will not be any origination fees when you take out federal government assisted consolidation loans though the department of education, which is one of the best benefits of all. This truly is a great benefit that saves the former student a lot of money. This type of savings will pay off. This really cannot be construed as a danger, since it costs you no money. It truly is one of the best benefits that government assisted consolidation loans have to offer.


Don't stretch your payments with government assisted consolidation loans. If you borrowed money as a student several times, there is a good chance you have more than one payment to make each month. When you roll your payments into one payment, you run the risk of losing money, rather than coming out ahead. Let's look at some of the ways government consolidation loans can actually work against you, so you can avoid the dangers and pitfalls associated with them. It's really up to the former student, as the borrower, to make sure they don't fall prey to any of the pitfalls that can occur. Here's what to look for.

Spreading payments: If you borrowed money for school, and they were taken several years apart, your federal student obligations may both have very different terms. On one, you may only have a few years left to pay. You may have much more time on a second account. IF you use government assisted consolidation loans to try to lower your payments, you will likely lose money. If you take the term out for longer than what is left on the shorter account, you run this risk. Former students that are now paying off their accounts will need to use extreme caution.

Interest rates: Government assisted consolidation loans have a great rate of interest. This is part of the reason they are so appealing. Keep in mind, however, that if you borrowed from the federal government initially, you may have the same interest rate, or possibly even a lower one. Government assisted consolidation loans will have a varying rate of interest. If you were a student in the past, your rate of interest on your current accounts could actually be a little lower.

Future dangers: You can use government assisted consolidation loans to consolidate all of your accounts, even those taken out from private lenders. Keep in mind that you typically cannot file bankruptcy against federal accounts like this. This means that if you fall behind, and must file, you will not be able to eliminate your government assisted consolidation loans. Those from private lenders can generally be voided. This may not be an issue now, but it may be in the future, depending on your current and future situation.

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