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Government assisted consolidation loans exist to assist borrowers combine their Federal education loans. Financed by the U.S. Department of Education, this kind of loan is more commonly known as Direct Consolidation.

This loan is just like other loan wherein you have a lender (only in this case, it’s the government), one loan and a monthly repayment making it all easier for you to manage.

Here are a number of advantages that the government assisted consolidation loans offer:

The interest on these loans is usually low. These loans are generally easier to get too and hence make your debts easy to manage and reduce also. You can decide on taking the loan early to lock in record low interest rates.

You have four plans to choose from regarding how to repay the loan and the terms are flexible. These plans take into consideration the income of the borrower and even his changing needs. Your monthly repayments will take into consideration your income, family size and loan amount.

Another benefit is you don’t have any minimum payment requirements and the consolidation is free. You can also defer payment for up to 3 years and have a grace period of six months before you start your repayments. The loan has a repayment period of 12-30 years.

As mentioned earlier, you must have outstanding federal student loans. Then you must qualify based on your need which is evaluated on the basis of your income, family size and the total outstanding balance of your federal student loans.

Below are some of the benefits of Government Assisted Consolidation Loans:
- the ability to defer payments up to 3 Years
- no payments for the first 6 months
- no loan origination costs or fees for consolidation
- extended loan payment period of up to 30 years