Government Offers Student Loans to Borrowers with Bad Credit

The government has offered student loans to borrowers with bad credit as many current and former students may have multiple loans that must be paid.

With the amount of money in outstanding student loans now exceeds credit card debt, the government has taken notice and provided a solution and aims to lower payments into one single manageable payment.

Government Offers Student Loans to Borrowers with Bad Credit

“These programs simplify loan repayment by combining several types of Federal education loans… into one new loan”, said the Federal Student Aid department in a statement.

Dubbed as A Direct Consolidation Loan, the government said that there is no minimum amount required to qualify for this loan and consolidation is free. They also noted that the consolidation loan program is designed to help borrowers using the direct loan program and the Federal Family Education Loan (FFEL) program.

The government added that private consolidation loans may also be available and the interest rate may depend on the loan amount and the credit history of the borrower just like any other private debt consolidation loan.

by http://www.dailyrosetta.com/