The idea that financial aid from the federal government gives individuals and businesses an unfair break holds no water. Even if they are designed to help, these loans can be eventually put the borrower in a lot of debt if they are not properly managed. This is why it can become necessary to turn to a federal loan consolidation program.These programs have a lot of advantages, not least because they can rescue the borrower from the point of bankruptcy. Generally speaking, these loans are available at lower rates of interest and with more flexible repayment terms. So, getting loan approval can provide a huge boost to those that really need it.The idea of taking out a loan to repay other loans may seem strange, but by properly managing the debt created by federal loans, the deal can be perfect. This is because it buys out the existing loans with one easily managed loan.Federal vs Private ProgramsThere are two different breeds of consolidation programs to avail of – namely, privately and federally provided programs. The main difference is based on interest rates, with the consolidation programs from private lenders generally more expensive to pay back. Federal loan consolidation programs, on the other hand, are less expensive because of the lower interest charged.The challenge of getting loan approval is not as great when applying for federal programs, simply because qualifying comes down chiefly to financial hardship. When applying to private lenders, the ability to repay remains the priority, so the chances of rejection when repayments are already hard to meet, are very low indeed.Of course, when looking to consolidate federal loans, the best port of call is a federal program. It is better to seek a private program when the source of the loan is private too. This is because the mix of private and federal is not generally beneficial.Qualifying for a Consolidation LoanThe process of qualifying for a federal loan consolidation program is dependent on the type of loans secured, and whether they are federal or private. When it comes to seeking approval on a program, it is necessary to be in debt to the federal government through their past funding offers. But chiefly agriculture and business are the two areas that are affected.Farmers and agricultural workers who have taken out FSA issued Farm Loans, Commodity Marketing Loans, Ownership Loans to alleviate their economic difficulties, and Farm Storage Loans all qualify for consolidation. Getting loan approval may depend on how far behind the applicants are financially.Any businesses that have taken out federally sponsored financing packages are also allowed to seek a federal loan program. There are basically five types of loans applicable to the program, including Small Business Loans, Disaster Loans, Indian Loans for Native Americans, and Physical Disaster Loans for businesses that have suffered physical (not just economic) damage.Meeting the CriteriaMeeting the necessary criteria to get federal loan consolidation is not particularly difficult, but only if the aspect of financial difficulties is confirmed. Not just anyone can get on the program, since it is designed to help those in hot water. What this means is that getting loan approval has nothing to do with bad credit. What is important, however, is the ability to meet monthly repayments.Securing a federal loan package depends on whether a natural or economic incident was suffered. Or it may be deemed necessary to get funds to have upgrade work done on the business facilities, for example. Poor credit management might make life difficult but a consolidation program can help borrowers regain a financial foothold.