There are a number of government programs that facilitate faster loan payments, especially in cases of multiple loans. These financing schemes are popularly known as government consolidation loans and are principally similar to any other consolidation scheme offered by private players.This kind of debt obligation enables the borrower to compile all his current encumbrances into one single loan.The biggest advantage of a government consolidation is that you will be charged a much lower interest rate than by private players, enabling you to make lower payments at the end of the day.Most of the debt that is consolidated include high rate financing such as credit card debts and house loans. With a government consolidated loan, the borrower almost invariably gains a lot. The advantages of using government consolidation are more or less similar to other debt consolidation schemes such as longer period for repayment as well as payment of one loan instead of several scattered loans, making it easier for the borrower to make one fixed monthly payment.There are certain classes of people who tend to benefit more from these programs than the others. One such class of borrowers is that of students who have taken multiple debt obligations in their college and have not been able to find a job even after their graduation. They can make use of these loans to reduce their outstanding high interest debts including student loans, medical loans and credit card bills.Most government consolidation loans are administered by the Department of Education. The department starts off with paying off the government loans and enables the borrower to take a single loan for rest of his loans. The borrowers can also make use of several other family loan programs wherein the government provides the borrower with an option to pay off his old loans for a new loan through the standard plan, extended payment plan, income contingent plan and student payment plans.The government operates consolidation schemes for every type of loan and every type of borrower as well. However, you need to be very careful while opting for a government loan consolidation scheme, not because the government schemes are dubious but because there are a number of spurious companies that claim to be providing ‘government loan consolidation services’ without having any authorization from the government. However, most of these turn out to be a farce and you can end up paying a larger amount than you would have otherwise.