In order to be able to qualify for a Government Assisted Consolidation Loan, you need to have or have had a Federal education loan. These types of consolidation loans are funded and financed by the U.S Department of Education.
Having one of these loans is very much like having other loans of this type. You still take out only one loan, make one monthly repayment, and have one lender- which happens to be the Government.
If you do consider taking this loan out then there are several advantages to this. Firstly the loan is based at a lower interest rate. This means that they are easier to get and make it substantially easier to manage and reduce your debts. It is possible to start the loan earlier in order to secure and record the lower rate.
The government assisted loan has four options that you can consider to see which option is suitable for you. They take into account your income and any needs that are likely to change such as dependents. This and your family size, total income and loan amount are all considered. The options available for the loan are very flexible.
There may also be other benefits which mean that you do not have to pay any set loan fees. It is a good option for those who do not need a set minimum monthly payment amount. This loan also has the choice to make a deferred payment arrangement for up to three years and you can also receive a six month period before you have to start making any payments. The period of the loan offered can be anything between 12 and 30 years. This is dependent on the amount that you need to borrow for the loan.
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