Direct loans student loans are loans which are designed to help parents in paying for the education of their children after finishing high school. These types of loans have very low interest. The lender of this loan is the U.S. Department of Education but you have to go through a loan servicer which is usually a private business.

Having direct loans student loans can let you:

  • Directly loan from the federal government.
  • It can let you access your account information online through the website of your loan servicer.
  • You can select the repayment plan that you like in order to meet your needs.  Switching from one repayment plan to another is also allowed.

Applying For Direct Loans Student Loans

The first thing that you must do when applying for direct loans is to fill out the Free Application for Federal Student Aid (FAFSA). The convenient way of applying is to go online and fill out this application form. This is what most students do. After this, your FAFSA will be distributed to the schools that you have written on your application form. The schools will then use the information in your FAFSA in assessing the financial aid that you require.

Direct loans student loans are part of the “award package” which comprises different forms of aid. This is generally designed in order to meet the cost of education in going to college or career school. There are different types of direct loan programs which you can choose from.  These are:

  • Subsidized – This type of loan is created for students who exhibit financial need. This is determined specifically by federal regulations.
  • Unsubsidized – This type of direct loan is not based on the financial need. That is why, interest will be charged during all periods.
  • PLUS – This is an unsubsidized loan designed for parents of dependent students. Graduate/professional students can also get this type of direct loan. Interest is charged in all periods.
  • Consolidation – These are federal student loans which can be merged into one Direct Consolidation Loan.

The borrowers of direct loans student loans are not required to start making payments unless they are enrolled less than part time or they have graduated. The school will be the one to inform the borrowers on the amount that they can borrow and what type of loan are they eligible for.