What exactly is a Government Debt Consolidation Loan? Simply put, these are loans offered by several different government programs to help you pay off multiple loans. This allows a person to simply take care of only one monthly payment as opposed to two or three other different creditors. A government debt consolidation loan also allows the borrower to get lower interest rates by turning all unsecured debts into secured ones.It is students in particular who are often times offered or apply for a government debt consolidation loan. The federal government has several programs that are aimed to assist students to reduce and ultimately pay off all their debts; since students normally have student loans, credit card payments as well as having medical bills that keep them in debt. The Department of Education in particular, pays off the federal education debt and issues a brand new loan based on the consolidated amount of money of all the previous loans. This is done in part of the Direct Consolidation Loan Program of the government.The government debt consolidation loan program indeed has four plans for the borrower which namely: standard plan, extended payment plan, graduated payment plan and income contingent repayment plan. Each of these has features and aims to suit each situation of every borrower which makes it flexible enough for the borrower to pay off.Government debt consolidation loans are pretty much similar to other types of loans with the sole exception that they are given by the federal government through several government programs as opposed to the traditional lending companies such as banks or credit institutions. The one thing to lay out in the open is, and I say this because there are a lot of borrowers who fail to realize this until it’s too late, is that debt consolidation loans do not come free of charge. To put it bluntly, you will and have to, pay for this type of service. The monthly payment is very minimal of course, and government debt consolidation loans will actually help you save money in the long run as well as helping you to prevent doing any damage to your credit score.But, as a smart practice, the borrower should go and get sound advice and consulting first before coming up with the decision. Most of the existing government debt consolidation loan programs today will also get in touch with the creditors in your behalf just to make all the necessary arrangements to ultimately consolidate your debt. But you have to be prepared for the initial consultation as well. You have to make sure that you have all the information on all of your current balances and other loan information. Make sure as well that you understand fully all the terms of any contract and procedure before going ahead with a government debt consolidation loan.In today’s age where the finance world revolves around credit and loans and credit scores, where it is impossible to survive without at least one maxed out credit card in your wallet, a government debt consolidation program can be a godsend for borrowers who find themselves hip deep in high interest loan and credit card payments.