• Doris Hall posted an update 6 months, 3 weeks ago

    Families needing student loans to pay for higher education find there are many options available, and not all are favorable. Some loans are relatively easy to obtain and have few qualification requirements, but they may come with higher interest rates or inflexible payment terms. If a student qualifies, the Federal Direct Loan is the best type of student loan available.

    What types of loans are available to students?
    Student loans can be made to students or their parents. Private loans are available through banks, credit unions, and other lenders. They can be structured in many ways, and families often use a home equity loan or personal line of credit to help finance college. In contrast, federal loans come from programs on supported by the United States government, and they typically have tighter restrictions, including financial need, caps on the amount one can borrow each term, and required proof that a student is taking the minimum credit hours per semester.

    What are the advantages of Federal Direct Loans?
    The Federal Direct Loan is a specific type of federal student loan. It offers one of the lowest interest rates among all types of federal loans, as well as flexible options for repayment, including the ability to defer repayment while still in school (undergraduate or graduate) and income-based payment options. The Direct Loan comes in two forms: subsidized and unsubsidized. Depending on which type of Direct Loan a student has, he or she may not be charged interest while in school.