Consolidating debt thru the federal gov
If you are struggling to manage your debt but unsure of what steps to take, you can look into solutions offered by loan consolidation companies. Many of these paths negatively affect your credit score, require long-term dedication and obligate you to still pay off the majority of what you owe.
Debt consolidation companies communicate with your debtors to negotiate lower rates on your behalf.
People often like this sort of structure because of its convenience.
They can make just one payment instead of many, and they don’t have to keep track of multiple due dates.
However, there is a possibility that they could include a school using illegal recruiting tactics – for example, guaranteeing the student a well-paid career. Department of Education promised debt relief to students of the bankrupt for-profit Corinthian Colleges schools (click here for more information on how to apply).
A government debt consolidation loan is a loan given by a government program or agency in order to help a person pay off debts he or she owes to multiple institutions simultaneously.
The debtor basically surrenders all outstanding balances to the government entity, which will pay them and issue a loan representing the balance owed, plus some degree of interest in most cases.
It’s common for college students to graduate with multiple federal loans – which usually means making multiple payments to multiple servicers each month.
To help grads cut through the clutter and simplify their bills, the U. Department of Education has a free loan consolidation program that is user-friendly. Consolidating student loans can be very appealing if you’re juggling multiple bills each month, but be sure to explore all of your options - both federal and private - before signing on the dotted line.