Direct Student Loans Advantages

Direct student loans provide a low cost way for many students to fund their college education. The loans are administered through the William D. Ford Direct Student Loan Program, which is serviced through the Department of Education. The direct student loans are actually issued from the U.S. government.

Several loans are offered through the Direct Loan Program, including:

• Stafford Loans for students
• PLUS loans for parents and graduate students
• Consolidation loans-for both students and parents

To apply for any of the loans in the Direct Student Loan Program, individuals need to complete a single application; the Free Application for Federal Student Aid or FAFSA.

One important key note regarding direct student loans which students and parents should understand is that direct student loans are not sold. While other types of educational loans may be sold at a later time, since these loans are made directly through the federal government, repayment will be made back to the Department of Education throughout the life of the loan. This is an important advantage because it creates a streamlined, simple process.

Advantages of Direct Student Loans

Direct student loans also feature other advantages, including flexible repayment options. There are four repayment options available through the Direct Loan Program. These are:

• Standard-allows you to pay a fixed amount each month until the loan is paid in full. 10 year repayment term.
• Extended-features a minimum monthly payment; however, you can take from 12 to 30 years to repay
• Graduated-payments start out low and then increase every two years. Length of repayment period depends on total amount owed
• Income Contingent-payments calculated annually based on adjusted gross income, family size and amount of direct student loans. Features maximum repayment period of 25 years.

As needed, students and parents can change repayment plans with no fee charge at any time during the term of the loan.

If direct student loans sound as though they may be right for you, let studentloans.info help you get started with the process. We can answer questions, help determine whether you may qualify and assist you with the application process.