Government debt consolidation - what you need to know
It seems that whenever there is a company in financial trouble these days they are asking the government to get them out of trouble. But is it really fair that the government can help companies to get out of trouble when individuals have to find their own way out? Does the government have any program in place to help out the average American if he runs into financial trouble? Is there such a thing as a Government Debt Consolidation program?
There really aren't that many government programs that are available to help the average American with their financial problems. Debt consolidation programs are usually types of loans that a person can take out to consolidate all of their debts into one loan. Many banks offer consolidation loans but there are also other options where an agency can act on behalf of a person to negotiate with borrowers for a better deal on their debts. These are usually not sponsored by the government but there is one type of loan where a government debt consolidation program can help and this is for student loans.
Federal student loans are guaranteed by the U.S. government in the United States. As such these loans are treated very differently than most other type of loans. There are many student loan consolidation plans available for you to consider when looking for a federally guaranteed student loan. If you are approved for such a plan, then your existing student loans may be purchased and closed by the U.S. Department of Education or a special student loan consolidator.
Most private lending arrangements require that the borrower pay some fees at the time of the loans closure. A government debt consolidation agreement should not require any payment of fees by the borrower. There are almost always fees when it comes to private lending, regardless of whether the loan is unsecured or a secured loan using an asset as collateral. These fees are usually assigned when the loan is first taken out. In some cases even these fees may be rolled over into the loan agreement so that you don't have to pay them out of our pocket up front. This is not applicable for a government debt consolidation student loan as there will be no such fees to be paid.
When a person takes out a government debt consolidation student loan it can help to protect their credit rating. As much as it protects their credit rating, it also doesn't help their credit rating score to climb as not all federal student loan holders report their account to the credit bureaus.
If you have numerous student loans and are struggling financially then a government consolidation loan might be what you need. You can consolidate all of your loans into one loan with no fees and protect your credit rating at the same time.
TAGS: government debt consolidation what you need to know,debt consolidation
Article Source: Messaggiamo.Com
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