Direct student loan consolidation organizations vie for a student's business in this day and age when the major source of funding for a higher education is through educational lending. Every year a college attendee must reapply for borrowing, and many times throughout a student's educational career, their college lending is bought and sold, resulting in a mess of different options, a variety of payment amounts, and repayment schedules. Direct student loans consolidation can ease the burden of such disarray and allow the borrower to make just one monthly payment to one lender.
The most popular consolidating organizations are those that receive guaranteed government funding. Some private direct student loan consolidation groups have insurance from organizations up to a certain limit, and therefore must allow certain restrictions and limitations with their deferment options and repayment terms. The best organizations allow for deferment periods indefinitely while a student is enrolled in school. Some direct student loans consolidation require that a college attendee be enrolled in a degree seeking program not to exceed 4 years, while others allow a flat 3 year deferral and never more.
Government sponsored and guaranteed programs allow repeat consolidating if the student takes out another amount at a later date to pursue their education further. When this happens, a new loan is formed, including the offering of a new deferment period. This deferment period is especially essential to borrowers and could make the difference in selecting one direct student loans consolidation program over another, far more than the interest rate. Borrowers opting for a better deferment or forbearance period should stay within the government guaranteed participating lenders. These lenders offer no time limitation of in-school deferment periods, as long as the student is enrolled half time, and as long as the school participates in federal financial aid programs.
These lending programs utilizing the governmental guaranteed program do have maximum limits. These limits can be stretched into a repayment term not lasting longer than 25 years and usually carry the absolute lowest interest rates. Students choosing the government direct student loan consolidation programs need to be aware that just because the government guarantees the program, doesn't mean the government is responsible for repayment. When a Christian borrower makes a promise to pay, that promise is first to God. The Bible says in Ecclesiastes 5:4-5 " When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou has vowed".
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