Federal Student Loan Consolidation Program

Federal Student Loan Consolidation Program was created in 1986 to enable graduates with more than a federal loan to consolidate all into a single loan package. Such loans were consolidated variable interest rate from 1986 to 1998, but in 1998 the U.S. Congress served to convert the variable rate to a weighted average of a fixed rate. The latter entered into force on February 1, 1999. Before this time, a consolidated student loan federal government used to have a variable rate. That rate was determined by either the university or the lender, who is the loan originator. In 2005, the Government Accountability Office (GAO) intervened, took into consideration the savings of consolidating all loans consolidation. On the basis of future changes in interest rates, loan volume, the percentage of defaults and the estimated costs of the Department of Education, the GAO concluded that this would cost an additional $ 46 million. The GAO also concluded that this cost would be offset by savings of $ 3,100 million, which was partly to avoid a cost of $ 2,500 million in subsidies.

Debt consolidation is a good way to take to get on the road to being debt free for several reasons. First, you can lower your interest rates. Secondly, the accounts are conveniently grouped in one bound. Sanctions third, and late fees are eliminated. Small bills generated by lower fees and lower interest rate consolidation loan will give you the opportunity to use their monthly income for personal expenses more legitimate. Or, more importantly, these savings will give you extra income to pay your debt at a faster pace. Getting debt free faster. Look at the various debt consolidation loans in California and the solutions that are available online that have little time to apply and usually without pulling your credit.