Obtaining a Federal Government Loan Consolidation

Finance Dept.

From the Finance Research Center

If you are having trouble keeping up with multiple payments for all of your college loans then a federal consolidation loan might be able to help you. What a government loan consolidation will help you do is to consolidate all of your student loans and other loans you would like payed off. This can really help you get lower interest rates, small monthly payments, and also help you clear up your hassle of keeping up with each individual payment.

A federal consolidation loan can be applied for through a financial institution of your choosing. One nice thing about the loan is that there is no credit check. Of course with any loan their maybe a few drawbacks. First you can't re-consolidate your loan if you find a lower rate. Also payments are usually extended further out. What this does is allow for smaller monthly payments. However, the longer it takes you to payoff a loan, the more interest you will pay by the time of payoff. Also you may lose loan forgiveness and you may lose a grace period. Just a few things to take into consideration before applying.

Of course with those negatives there are a number of benefits that can really help you out. You will be able to pay this loan off when ever you want. So if you ever hit the jackpot you can pay this loan off in one lump sum with no penalty. Maybe the biggest of all benefits is that this loan is a fixed rate loan. This ensures that your payment will never balloon and that a portion of your loan payment will always be going towards the principal.

If you have too many loans from your college days, then perhaps, a Federal consolidation loan is right for you. Contact a lender of your choosing today to see if the loan is right for you.

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