The federal student loan program according to available federal student loan information is also known as the Direct Loan program that is in fact a low interest loan for students as well as parents that need some help in paying off the higher education costs of their student-children. According to available federal student loan information, the federal student loan is issued directly by the United States Department of Education to the student and so no other banks are involved when students apply for such a loan.
All About Federal Student Loan Information
Since the Direct Loan is available directly from the federal government the student must administer the entire process on their own which is possible, according to available federal student loan information, by making full use of the Direct Loan Servicing Center which is especially useful when you as a student intend on taking more than one loan and from a number of different schools.
Furthermore, according to available federal student loan information, you will also have quite a number of choices in regard to type of loan that is available under the Direct Loan Program and it is also important to have the required federal student loan information to help you learn about important differences between different kinds of loans and their individual applicable interest rates.
For example, if you check available federal student loan information you will also learn to differentiate between a subsidized, unsubsidized and Plus loan as well as the Consolidation loan. It pays to get as much federal student loan information regarding each of these different kinds of loans; for example, the subsidized loan is available to students that have certain financial requirements as recognized under existing federal regulations. Such a loan does not require the borrowing-student to pay any kind of interest as long as the student is enrolled in school for more than half-time attendance.
The unsubsidized loan is not given because the student has any kind of financial needs of the student but it is a loan in which the student has to pay interest on the loan and this interest is also charged during the grace period.
The Plus loan is really an unsubsidized loan for parents of a student and is meant to help in covering the educational costs that are not provided for through other forms of financial help. This loan, according to available federal student loan information comes with attendant interest that is charged
Finally, there is the Consolidation loan that is a combination of different eligible student loans (federal) that are consolidated into a single Direct Consolidation Loan. The main advantage to this kind of loan is that it invites lower monthly payments and this is possible because the repayment of the loan is spread over a longer period of time. However, this also means paying more interest because you are paying over a longer period of time.
Direct student loan refers to a type of student loan that is provided to the student or to the parents of students by the government directly without needing to use an intermediary lender. This kind of loan can be used for paying for both undergraduate and graduate education and also for certain kinds of vocational education.