PostHeaderIcon Free Government Debt Consolidation – Is It A Viable Option?

For individuals facing significant financial hardship, free government debt consolidation may be a viable option for those who qualify for one of the various programs available.

While the government does not simply offer these services as a standalone social service, there are a countless number of programs targeted at helping specific groups, each offering consolidation loans – programs designed to help students and those designed to stabilize the housing market by benefitting homeowners are but two examples. If one can find such a program, either through personal research or with the aid of a third-party service, it is possible to improve one’s debt situation at least in part.

Hector Milla Editor of the “Best Debt Consolidation Companies” website — — pointed out;

“…The most common, or easily understandable, example of these types of programs is the Higher Education Act, which created both the Federal Family Education Loan Program and the Direct Loan Program – authorized through the act is also the Direct Consolidation Loan Program. These programs, designed to benefit students and their families, allow a student borrower to refinance multiple loans that may have been originated at different lending institutions with different loan terms into a single loan…”

The benefit to the borrower is that the terms of the new loan tend to allow for a significantly longer repayment period, and, in most cases, the new loan is written at a greatly reduced interest rate. The additional implicit benefits are that since the borrow must now only budget for a single loan, the monthly payment is also usually lower and far easier to plan for and service. Essentially, the Department of Education (DOE) pays off the original loans and writes a new loan, with the new terms, to the borrower which is then the only debt that must be serviced.

Another increasingly common government program that has gotten significant press coverage is mortgage loan modification. While there are very specific requirements that the borrower must meet to qualify for this program, for those who do, lenders are providing reduced interest rates and amended payment terms.

“…While under this program, the borrower does not receive a loan directly from the government (the government requires the existing lender to amend the loan terms), it is another examples of viable and free programs that an individual may participate in if they qualify. Finding these programs, even if one must pay a modest fee to a third-party debt consolidation company, can have a significant and immediate impact on one’s circumstances and should be seriously considered…” H. Milla added.

Further information about trusted and reputable companies for debt consolidation by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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