PostHeaderIcon Is Government Debt Consolidation For Real?


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For various individuals facing significant financial hardship, but who also realize that bankruptcy is not an appealing option, the very real option of government debt consolidation programs may be an option.

The key to understanding government programs of the nature is to understand that they have specific requirements that borrowers must meet and that they are designed to meet a narrow goal – to aid students or to aid homeowners and stabilize the housing market.

Hector Milla Editor of the “Best Debt Consolidation Companies” website — http://www.BestDebtConsolidationCompanies.net — pointed out;

“…What each program has in common is that it will allow a borrower to take several higher interest rate loans and refinance them into a single, more attractively priced loan. If one can find one of these programs that are appropriate to his or her individual circumstances, sometimes with the help of a third-party private company, these programs can be an attractive and effective way to manage one’s debt issues…”

One of the most straightforward examples of such a government program is the debt consolidation offered by the federal government for students through the department of education. The DOE, as a part of the Direct Loan Consolidation Loan Program, authorized by the Higher Education Act and run through the Direct Loan and Federal Family Education Loan Programs, pays off the original federal granted (Stafford) loans and re-issues a single loan to the borrower. The loans to be paid off may have been originated through multiple lending institutions and may have widely varying payment terms (interest rate, term, payment dates, etc.). The goal of these programs, and any properly construed debt consolidation program, is to provide the borrower with a single, more manageable monthly payment that is tied to a lower interest rate; these programs also offer extended payment terms, in many cases replacing ten-year term loans with twenty to thirty-year terms. In these cases, the borrower is able to either pay the loan off more quickly or more effectively manage his or her budget with the lower net payment amount.

“…While not every borrower will necessarily be able to find a government program that is easily tailored to his or her consolidation needs, there is a wide range of these programs available. Certain private companies may be able to aid a borrow in identifying and qualifying for such programs, but it is important to keep in mind that the government is providing the program – fees charged by the company should be consistent with aiding a borrower, not becoming the lender. A borrower can also check with his or her state’s attorney general to obtain information on these various companies before making any commitment…” H. Milla added.

Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

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