Just at a time when the entire nation has been worried about the soaring credit card debt level, there came rumors about the next big crisis, the student loan debt crisis. The rising educational and tuition costs among the US colleges is forcing the students and the parents to take out student loans with which they can complete their college education and grab their degree. Student loans are primarily of 2 kinds, private and federal. The private ones are those that are lent by the private student loan lenders and the federal are those that are lent by the US Department of Education. While it is difficult to consolidate the private student loans, it is pretty possible to combine your debts into a single monthly payment. Do you want to know how? Check out the multiple benefits of combining your federal student loan obligations through a direct debt consolidation loan.

• Various flexible repayment plans: As the borrowers of the student loans are usually students who live on fixed income level, the US Department of Education offers different flexible repayment plans for them to repay the loan with ease and without defaulting on the other debt obligations. The most common debt repayment plans offered are Income Based Repayment Plan and Income Contingent Repayment Plan. The student borrowers are even given the option of changing from one plan to another according to their changing financial needs. This can be a huge relief to the students who are struggling with their student loans.
• The interest rates will be lowered: When a student starts defaulting on the student loans, it is basically due to the interest rates. The rates remain high in accordance with the income that they make in a month in the form of allowances. This is the reason why a direct debt consolidation loan will benefit as this will drastically lower the interest rates on the student consolidation loan. Revised rates will also mean revised monthly payments and this will imply a considerable amount of savings every month.
• Single outgoing monthly payment: When you took out multiple student loans, you had to remember the due dates of multiple lenders. But when you take out a direct debt consolidation loan from a single lender or the US Department of Education, you just have to make a single outgoing payment towards this institution. Therefore you can relieve yourself of the hassles of making multiple payments to multiple creditors.
• Extended repayment term: The term of the direct debt consolidation loan will also be extended throughout a longer period of time to ensure lower monthly installments throughout the term of the loan. So, the borrower can even save money this way.

Therefore, if you don’t want to contribute to the rising student loan debt burden in the US, ensure getting them combined through the direct debt consolidation loan lent by the US Department of Education.