Federal Student Loan Direct
Federal Direct Student Loans come from two primary types of sources: Federal Direct Loan program and the FFEL.
Federal Direct Loan Program comes from the U.S. Department of Education’s Direct Loan Program. And the FFEL (Federal Family Education Loan) Program come from participating FFEL lenders. Both programs are included to the standard of federal student loans likes Stafford Loans, PLUS Loans and the federal consolidation loan.
What are the Benefits from Federal Direct Student Loans?
Federal Student loans borrowed through the U.S. Gov Direct Loan Program and you need to conduct all business directly with the federal government’s Direct Loan Servicing center.
Student Loans Direct are low-interest loans for students and parents to help pay for the cost of a student‘s education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
Features of the Federal Direct Student Loan program include:
- Borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
- Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the Web at: www.dl.ed.gov.
- Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
What are the Qualifications for Federal Direct Student Loans
The requirements for student loans direct are the same as other federal student loans. In order to qualify for these loans you must:
- Be a U.S. citizen, eligible non-citizen or resident.
- Be enrolled in a college or university half-time or more.
- Fall within in the qualifying income bracket determined by the government and your school.
- Have never defaulted on a student loan before.
How to Apply for Direct Federal Loans
As with all federal student aid, you apply for Direct Loans by filling out the Free Application for Federal Student Aid (FAFSA). Most students use FAFSA on the Web to complete their applications. The information on your FAFSA is transmitted to the schools that you list on the application, and those schools use the information to assess your financial need for student aid.
Financial aid professionals at schools can find operational communications and guidance, technical documents, and related information as well as tools for administering the program at their school. There is also a special section for schools interested in joining the program.
The award letters you receive from the colleges to which you’ve been accepted itemize the types of financial aid you’re offered. If you qualify for Federal Direct Stafford Loans or PLUS Loans your award letter will indicate it.
If you choose a Direct Stafford Loan or PLUS Loan you complete a Master Promissory Note, a legally binding contract between yourself and the Department of Education, the lender to whom you will eventually make all your loan repayments.
Re-Payments of Federal Direct Student Loans
Direct Stafford Loans come packaged with a 6-month grace period, same as the FFELP loans. And you may choose from four payment plans:
- Standard—fixed monthly payments for 10 years
- Extended—fixed or graduated payments for 25 years; must have at least $30,000 in debt
- Graduated—payments increase over life of loan; up to 10 years to pay
- Income-contingent—payments are refigured annually considering your income.
Read more on the www2.ed.gov for more info and updates.
Sources: www2.ed.gov, go-college.com
POWERED BY