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The Federal Direct Student Loan

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					Title: The Federal Direct Student Loan

Source: http://financeequityloans.com

Category: student loans

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A federal direct student loan is a loan offered by the government to
students that need financial help for collage expenses. This program was
started by the Department of education and with its help any student can
now study properly without having to worry about his financial situation.
Without this program, many students who had the intellectual ability of
getting through collage but not the financial resources wouldn't have any
chance at higher education. But because the federal direct student loan
aim for students with financial difficulties, anyone can now go to a
great collage based on intelligence only and not on money.
There are many student loans available from many different lenders. Each
student loan can offer a series or advantages over traditional loans, but
a federal direct student loan can be better than any other private loan.
This happens because of the interest rate. While lenders offer student
loans with an interest rate that brings them profit, in the case of a
federal direct student loan, the interest rate is lower because the loan
is offered by the government. The loans are controlled by the federal
government and the money given is taken from the federal capital. When a
student repays his loan, the money will go back to the federal capital
through the department of education.
If a student wants a federal direct student loan he has to complete a
FAFSA (Free Application for Federal Student Aid). The information that
you would write in this document will be verified and it has to be real.
Based on it, the federal government will decide how much you could get
from a federal direct student loan. When you apply for a loan, you might
get a subsidized or an unsubsidized loan. For example, if you get a
direct Stafford subsidized loan, it will be based on your financial needs
and you will have to be at least a part time student. The advantage of
this direct student loan is that the government will pay the interest for
the whole duration of your studies. If you don't qualify for the direct
Stafford subsidized loan, you still have a chance at the unsubsidized
one. This loan is not based on your financial situation and for the
duration of the studies the interest won't be paid by the government, but
it will be capitalized. This means that you won't have to pay it while in
collage, but it will be added up to the total amount of your loan and you
will have to pay it when the repayment process starts. If you have the
financial means to pay your interest rate, you can opt for making
payments while still in collage. Some students chose this option when if
they have a federal direct student loan because it will decrease the
overall value of the loan.
If students aren't comfortable getting a loan at a young age, parents can
get a student loan for their children. The PLUS loan offers almost the
same advantages as any other federal direct student loan, but it depends
on the credit rating of the parents. The interest rates can also be
changed in time and that is why some students prefer the Stafford loan.
The main reason for choosing a federal direct student loan is the large
number of repayment plans that you can get. No matter your financial
situation, you will be able to find a student loan repayment plan that
can satisfy your needs.

				
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