Department of Education Direct Student Loans by truth4reviews

VIEWS: 3 PAGES: 1

									Department of Education Direct Student Loans

There is a little known option available to students who need financial assistance. This is a
direct loan available from the Department of Education. .

You can obtain an application by either calling the Department of Education or going online.
Doing a Google search will bring you to their website. From there, you can get all the
information you need to apply.

You can apply for two different types of direct loans - subsidized and unsubsidized.

A subsidized direct loan means that the amount of credit you receive is based on the tuition
you need.

As long as you are in school, you will not be required to make a payment and you will not be
charged interest. This is the best option.

An unsubsidized direct loan means that there is a limit to the amount of money you can
borrow. With an unsubsidized loan, the amount that you require is not taken into
consideration.

There is considerable interest charged to both these types of credits that you will be
responsible for paying.

Loan Amount Restrictions

The maximum amount for a subsidized loan varies depends on what year you are in college.
An undergraduate can receive a maximum of $2,625, and the maximum you can receive on an
unsubsidized loan is $4,000.

For the second year of college the maximum increases to $3,500 for a subsidized direct loan
and $5,000 for an unsubsidized loan. For the remaining years that you are in college, a
subsidized loan remains at $5,500. The limit for an unsubsidized direct loan does not increase
for the remaining years.

If you are a Graduate or professional student, the maximum you can borrow on a subsidized
loan is $8,500 per academic year. Graduate and professional students who apply for an
unsubsidized direct loan can borrow up to $10,000 per year.

								
To top