How Can Direct Loans SM Help Pay For College Or Career School Expenses? Direct Loans Are Low-interest Loans For Students And Parents To Help Pay For The Cost Of A …

How can Direct Loans help pay for college or career school expenses?

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank.

Direct Loans are:

Simple—You borrow directly from the federal government.

Flexible—You can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.

What kinds of Direct Loans are available?

Direct Subsidized and Unsubsidized Loans — Your eligibility for Direct Subsidized and Unsubsidized Loans is based on the information reported on the Free Application for Federal Student Aid (FAFSASM). No interest is charged on subsidized loans while you are in school at least half-time, during your grace period, and during deferment periods. Interest is charged on unsubsidized loans during all periods.

Direct PLUS Loans—Direct PLUS Loans are low-interest loans available to parents of dependent students and to graduate and professional degree students. Interest is charged during all periods.

Direct Consolidation Loans — Direct Consolidation Loans are loans for borrowers who want to combine their eligible federal student loans into a single loan.

Download Direct Loan Basics For Students.pdf