Government Debt Consolidation Loans



There are many government debt consolidation loans to choose from when you want to consolidate your debt. For example, the government has programs such as Sallie Mae, Fannie Mac, and Freddie Mac.

Sallie Mae - When you have a student loan, most likely some of those loans will come from Sallie Mae. If you are currently going to college and before you obtain your degree, you want to call Sallie Mae and arrange that they consolidate your student loans. Government debt consolidation loans from Sallie Mae are usually fixed rate loans with low reasonable annual percentage rates(APR).

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Going back to Sallie Mae if you want to study for a degree and apply for a student loan, Sallie Mae is usually one of the lenders that your school will get their money from for you to study for your degree. The interest rates are okay and the customer service is decent. Sallie Mae is one of the biggest lenders for student loans.

Unfortunately, Sallie Mae was in the news around the 2007 and 2008 time frame and they almost there were talks about bankruptcy because of the economic conditions at that time. Fortunately, they are still around today (2011) to help people out.

Fannie Mae – Mortgage loans come from Fannie Mae but not directly to the consumer. From the website of fanniemae.com, Fannie Mae operates in the U.S. secondary mortgage market. Rather than making home loans directly to consumers, we work with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates. We fund our mortgage investments primarily by issuing debt securities in the domestic and international capital markets.

Freddie Mac – Freddie Mac come from a branch of the government that helps banks with mortgages. From the website of freddiemac.com, the secondary mortgage market consists of institutions engaged in buying and selling mortgages in the form of whole loans (i.e., mortgages that have not been securitized) and mortgage-related securities. We do not lend money directly to homeowners.

There you have it, a better understanding of what Fannie Mae and Freddie Mac do. They both are lenders for mortgages and not consumers. I am guessing the reason is because the amount o f money loaned to the banks is in the billions. Therefore, the Government can make money off of the interest from these types of loans.

These types of loans are usually fixed rate loans. A fixed rate loan should not change per year like a variable loan does. When the bill is due on a variable loans, the statement most of the time show no evidence of when the loan will be paid back. I personally think that fixed loans are better, because the person knows how long it is going to take to pay the loan back. A person would have to discuss the fixed rate loan terms and variable loan terms with the lending institutions to understand the loan terms in detail.

That is all I have to write about when it comes to government debt consolidation loans. I hope that you have furthered your financial knowledge.

Referances

Fannie Mae - http://www.fanniemae.com/kb/index?page=home&c=aboutus

Freddie Mac - http://www.freddiemac.com/corporate/company_profile/

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