Direct Student Loans

There are all sorts of student loans available right now and there are there’s also been a recent increase in the number of companies who are offering financial aids to students in need. Direct loans are just among the numerous ways of financing your education.

Direct loans are a term used to refer to a kind of student loan that is provided directly either to the student themselves or to their parents. The money would come from the government and there are no private lenders involved. This kind of student loan can be utilized to pay for either graduate or undergraduate education as well as some forms of vocational studies.

The Stafford loan, the Perkins loan as well as the PLUS loan are three types of student loans that are considered to be direct loans. To apply for these loans you would have to fill out the Free Application for Federal Student Aid which is the standard for the three direct loans mentioned above. The form would entitle you to many government loans and these should be the first ones you consider. They have the most reasonable interest rates as well as deferred payments.

There are also ways of to finance your education for free. You just have to do some research in order to find them. Probably one of the best ways to save both time and money on financing your education is through a college level examination program or the CLEP. CLEP exams can help save you money on tuition fees as well as your other school expenses.

Direct loans are very simple as well as very convenient to use. A direct loan is a loan by a lender to a borrower without using any middle man or third party. This enables the lender to have better discretion in the way the loan is distributed. Usually, the lender is the US Department of Education instead of a bank or a private lending agency.

There are four kinds:

The federal direct subsidized Stafford/Ford loan is a kind of direct loan which basically means that you don’t pay the interest of the loan while you are still in school or at least going part time. This kind of direct loan is based upon the student’s financial need in accordance with the federal regulations.

The federal direct unsubsidized Stafford/Ford loan is another where the government charges you with the interest even while you’re still in school. But the need of the student doesn’t have to be as extreme as the subsidized one to be able to get them this loan.

The federal direct PLUS loan is designed for parents without any bad financial history who wants to borrow money for their dependent student. In order for a student to be considered dependent, he or she must not be 24 years old or older, is a professional or a graduate student, is someone with legal dependents or is an orphan or a ward of the court. Parents of independent students are not eligible for this loan.

The federal direct consolidation loan is a consolidated loan of one or more federal loans which were combines into a direct loan. A single payment which is made to the US Department of Education every month is done to pay it off. It is very advantageous for students because of the considerably low interest rates.

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