The government debt consolidation program works especially for the students. It is very common for the students to accumulate loans and debts through credit cards, student loans, and medical bills. The government debt consolidation program combines the debt of the student, pays them off, and makes the student responsible to pay for just one loan. When debt accumulated due to different credit cards is paid off by one single loan then it is called credit card debt consolidation. Credit card debt consolidation is a part of unsecured debt consolidation Types of Government Debt Consolidation
The debt consolidation programs offered by the government are of four types
1. Standard Repayment Plan: In this plan, the duration to pay off the loan is 10 years. The rates of interest and the monthly payment are fixed.
2. Extended Repayment Plan: In this plan, the duration for paying off the loan can be extended to 30 years. The interest rate is fixed but the monthly payment in spite of being fixed is less and affordable. In this type of plan, the debtor ends up paying more interest.
3. Graduated Repayment Plan: The Graduated Repayment Plan is similar to the Extended Repayment Plan. The difference is that every two years the monthly payment increases.
4. Income Repayment Plan also known as Income Contingent Repayment (ICR) plan: In this plan, the duration of paying off the loan can be extended to 25 years. The monthly payment is not fixed but is variable depending upon various factors such as income, amount to be paid, number of family members etc.
The Process Of Application:
The process of applying for government debt consolidation loan is simple. One can fill the form and submit online as well as offline. The online alternative is easy. The Government Debt Consolidation services works through different lenders that have their own websites. The Government Debt Consolidation program is cheaper than the debt consolidation services offered by the traditional lenders just because the rate of interest is much higher in case of traditional lenders. The debt consolidation services offered by various lenders should be compared. The chief financial office of the city, also called the finance director plays a key role in recommending the debt consolidation service. The process of consolidation of bonds involves recalling of the bonds and issuance of other bonds. This legal process is usually complicated and so requires the services of specialized attorney also known as bond attorney. Sometimes the process may prove to be expensive but always cheap in the longer run.
Different Lenders: The Government debt consolidation services are not offered directly but through different lenders such as the Federal Education Services (FES). Some of the lenders offer free debt consolidation and free debt counseling. The consolidated loan is issued by the Department of Education to payoff the other loans. This is included in debt consolidation program. Debt consolidation programs are allowed under the Direct Loan Program and Federal Family Education Loan (FFEL) Program that come under the umbrella of Higher Education Act (HEA).
Benefits of Government Debt Consolidation program: The biggest benefits of Government Debt Consolidation services are reduction in the monthly payments and decreased rate of interest.
Source
Monday, September 28, 2009
Tuesday, September 15, 2009
Agricultural Loan Repayments Good
WINDHOEK - Agribank says the repayment of loans is “quite satisfactory” amid the current economic conditions. Agribank’s total loan book grew 92 percent over the previous financial year to N$1,36 billion.
As of June this year the loan book stood at N$1,4 billion and Agribank Chief Executive Officer Ambassador Leonard Iipumbu says it would exceed the N$1,4 billion by the end of the year.
The sterling performance is due “to the successful implementation of the restructuring process.
“The repayment rate of loans is quite satisfactory and we will continue to strengthen the recovery process for the bank to accumulate enough liquidity to provide affordable products,” said Iipumbu.
The purchase of farmland is the most predominant loan activity constituting 54 percent of the total loan book, followed by loans for the livestock sector with 14 percent, and consolidation of debts in third place at 13 percent.
Moreover, 10 percent of the total loans are to single women, 23 percent to couples, compared to 64 percent loans held by men. Otjozondjupa Region has the highest proportion of loans granted at 28 percent, followed by Omaheke and Karas with 16 and 14 percent respectively. Oshikoto and Hardap regions are at 10 percent each.
Iipumbu said a sound financial position and an improvement in liquidity has enabled Agribank to not only reduce interest rates but also to review and introduce a loan consolidation facility.
The consolidation facility enables farmers to consolidate several existing and new loans into one affordable facility charged at a weighted average interest rate. Together with reduced interest rates, the facility has provided relief to Agribank clients in a time when economic conditions are not favourable.
‘The outcome of this agreement is quite satisfactory and most farmers responded positively,” said Iipumbu.
The agricultural bank is now looking at concentrating its efforts to put into operation the SAP system to optimise business system efficiency. The bank launched the SAP project in May and it is envisaged that the system would reach full operation by October this year.
“SAP system would provide a business environment which will enable the bank to deliver real time solutions and significantly improve client service delivery,” said Iipumbu.
As of June this year the loan book stood at N$1,4 billion and Agribank Chief Executive Officer Ambassador Leonard Iipumbu says it would exceed the N$1,4 billion by the end of the year.
The sterling performance is due “to the successful implementation of the restructuring process.
“The repayment rate of loans is quite satisfactory and we will continue to strengthen the recovery process for the bank to accumulate enough liquidity to provide affordable products,” said Iipumbu.
The purchase of farmland is the most predominant loan activity constituting 54 percent of the total loan book, followed by loans for the livestock sector with 14 percent, and consolidation of debts in third place at 13 percent.
Moreover, 10 percent of the total loans are to single women, 23 percent to couples, compared to 64 percent loans held by men. Otjozondjupa Region has the highest proportion of loans granted at 28 percent, followed by Omaheke and Karas with 16 and 14 percent respectively. Oshikoto and Hardap regions are at 10 percent each.
Iipumbu said a sound financial position and an improvement in liquidity has enabled Agribank to not only reduce interest rates but also to review and introduce a loan consolidation facility.
The consolidation facility enables farmers to consolidate several existing and new loans into one affordable facility charged at a weighted average interest rate. Together with reduced interest rates, the facility has provided relief to Agribank clients in a time when economic conditions are not favourable.
‘The outcome of this agreement is quite satisfactory and most farmers responded positively,” said Iipumbu.
The agricultural bank is now looking at concentrating its efforts to put into operation the SAP system to optimise business system efficiency. The bank launched the SAP project in May and it is envisaged that the system would reach full operation by October this year.
“SAP system would provide a business environment which will enable the bank to deliver real time solutions and significantly improve client service delivery,” said Iipumbu.
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