The federal student government debt consolidation loan will combine any loan that is held through the federal government, no matter the lender. This means that the Student Loan Finance Corporation, which is one of the federally funded student loans, can offer you a government debt consolidation loan with an extremely low interest rate. There are certain requirements to government debt consolidation loans. You must be paying off the loan; you also must be paying the minimum payment on time. Usually you will be offered a government debt consolidation loan right after graduation. The point in the government debt consolidation loan is to get the lowest interest rate possible as well as one monthly payment. Each year in college usually offered you a different loan company, which is why you wound up with more than one government student loan. The government debt consolidation loan combines all of these student loans into one combined payment.

The state government debt consolidation loan is going to take care of any loans you had through the state. That means for every year you went to college and used a state government student loan you are able to get a government debt consolidation loan to make the payments a little more affordable. While the state may combine the loan amounts into one payment, this doesn’t mean that they have consolidated the actual loans. For any government debt consolidation loan you are able to get a lower interest rate on the loans to reduce your payments. Of course the sooner you pay them off the better off you are.