Using Student Financial Aid Direct Loans

The Department of Education offers several Federal Student Aid programs, one of which is the Direct Loan Program. Direct Loans are a well-known loan option for college students and universities. Students can borrow money from one location and later pay it back. Direct Loans are a cost-effective and easy option for students to take out funds to finance college. Direct Loans are cost-effective and can finance the continuation of your education. Before you can understand the Direct Loan Program offers it is important to understand the details of Federal Student Aid.


In all likelihood, the Federal Student Aid programs provide the most frequently-used method of financial aid for college students. Each year, nearly billions of dollars are used for college education financing. Federal Student Aid programs offer everything from grants - which do not have to be returned to loans that must be paid back, along with the interest rates - to work-study plans that allow students to work in college (usually at the college). The Federal Student Aid Programs include among others but are not restricted to: Pell Grants, Stafford Loans through Direct Loans and the Federal Family Education Loan Program; PLUS Loans that are available to parents and graduate students (also available through Direct Loans and the Federal Family Education Loan Program); consolidation Loans are also available through Direct Loans and FFEL; and work-study programs, Perkins Loans and Federal Supplemental Educational Opportunity Grants.


Federal work-study programs, Perkins Loans, and Federal Supplemental Educational Opportunity Grants are called Campus-based programs because they are only offered by universities that have their campuses.


The next topic we will discuss is Direct Loans that the United States government offers directly. Private loans are provided by Federal Family Education Loan Programs. In the past, Direct Loans offer Stafford Loans, PLUS loans, and consolidation loans. While receiving Direct Loans is relatively easy, there are a few steps to be taken. First, the student must fill in the FAFSA form. Then, the financial aid package may include Direct Loans. If the student is accepted for the loan, he/she will be required to sign a master promissory notice.


For the life of the loan, the borrower must make payments directly to the Department of Education. Direct Loans cannot be sold. The biggest benefit of Direct Loans is their numerous choices for repayment. There are four options available for repayment: income-contingent, standard extended and graduated. Whichever plan a student selects, they can always go back and change it. When a student is graduating, some counselors talk about repayment options and the provisions.


Direct loans are one of the easiest and most rewarding financial aid options that are available click. The repayment options they offer are second to none and they're extremely understanding regarding unemployment deferrals and other such issues. Students about to embark on the college experience should be wise to research Direct Loans thoroughly because they truly do have something that will meet every student's financial needs.