Student Loans Direct

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How to get a Direct Student Loan?. The best place to learn more about Direct Student Loans is the Department of Education website. Students and parents can explore the site for information about the Direct Loan Program, including publications and useful tools to help manage their direct loans.

Direct Loans are low interest loans for students and parents to help pay for the cost of an education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution.

With direct loans, you:

• Can directly borrow from the federal government and have a single contact 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 direct loans on the Web at: www.dl.ed.gov
• Can choose from several repayment plans designed for the needs of almost every borrower needs and you can switch repayment plans if your needs change.

Contact your school to see if it participates in the Direct Loan Program.

How to apply for Direct Student Loans?
As with all federal student aid, you apply for direct loans by completing 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 sent to the schools you listed on the application, and that schools use the information to your financial support for student assessment.
The prize package

Direct Loans are generally granted as part of a larger award package that may include other forms of assistance and to help the cost of attending school or career school.

The Direct Loan Program offers the following loan types:

• Subsidized: for students who demonstrate financial need as determined by federal regulations. No interest charged while a student at school at least half-time during the grace period, and during deferment periods.
• Unsubsidized: not based on financial need, interest is charged during all periods, even during the time that a student in school and during grace and deferment periods.
• PLUS: subsidized loans for parents of dependent students and graduate / professional students. PLUS loans to help pay for education expenses to the cost of attendance minus any other financial assistance. Interest is charged during all periods.
• Consolidation: Eligible federal student loans can be combined into a direct consolidation loan.

Student borrowers are not required to start making payments when they fall than half time attendance.

Your school will tell you how much you can borrow and what types of loans you qualify to receive. The information below gives you an idea of how you may qualify to receive.

Note: PLUS loan borrowers may have an adverse credit history (a credit check is performed).

Acceptance of a Direct Student Loan
Your school will inform you of the loan amount it offers, usually in an award letter that lists all of the proposed financial assistance (your award package).

You should evaluate carefully the offer to help. In the case of loans, remember that whatever amount you borrow must be repaid with interest. If your expenses are not as high as the expected standard reimbursement from your school, you cannot borrow as much as the amount of the award letter.

For an idea of your monthly loan payments will receive after you graduate, take a look at our repayment calculator.

You have the right to decline the loan or request a lower loan amount. The Award Letter Your School will tell you what to do.

Credit Check and endorser option
If you are applying for a Credit Direct Plus, the department will check your credit history. To be eligible for a PLUS loan, you must obtain an adverse credit history. If you are determined to a negative credit history, you can still obtain a Direct Plus loan as an endorser that you have no negative credit history. An endorser is someone who agrees with the Direct Plus loan to repay if you do not repay the loan. If you are a parent borrow on behalf of your dependent student, the endorser is not the student on whose behalf a parent receives a Direct PLUS loan. In some cases, you may also be able to loan a Direct Plus if your document to our satisfaction that mitigating circumstances regarding your negative credit history get.
Loan limits

The maximum amount you can borrow each year in direct subsidies and subsidized loans depend on your grade level and on whether you are a dependent student or an independent student.