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Student Direct Loans - If You’re a Student, a Direct Loan May Be the Solution You’re Looking For - What is a direct student loan?

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It’s no secret to anyone that getting an education can turn out to be a rather costly endeavor. In fact, studies show that the number one reason people give up on the idea of pursuing higher education is anxiety over the associated cost. Thankfully, there is an option available to help students cover these costs simply and painlessly. It’s called a direct student loan and it’s quickly becoming one of the top ways to finance an otherwise unaffordable education.

What is a direct student loan?

A direct student loan is a special loan provided by the U.S. Department of Education. Unlike loans obtained through private lenders or banks, direct student loans exist especially to help people fund their educations and were created with a student’s special needs in mind. Interest rates are typically very low compared to standard loans and the student is given an ample amount of time to pay the loan back – typically between 10 and 25 years depending on the conditions attached to the individual loan. Should the student need longer than the specified amount of time to repay the loan, it’s often possible to work out an extension.

What are the different types of direct student loans?

If you’re an eligible student, a direct loan is available to you in one of two types. The first type is a subsidized loan. If a student is eligible for this option, he won’t be charged interest on his loan until he has completed his course of education. The second type is an unsubsidized loan. With this type of loan, the student will be charged interest from the time he was first approved for the loan. However, it is important to note that the overall interest rate charged will be much, much lower than it would be if it were subsidized. Many students are offered the option as to whether they would like their student direct loan to be subsidized or unsubsidized.

How can a student apply for a student direct loan?

Applying for a federally funded direct student loan couldn’t be easier. Simply send away for a free application for federal student aid to begin the process. (You can easily do so at www.fafsa.ed.gov.) Once you fill it out and return it, you’re officially on your way to being considered for your own loan. That’s it!

Thanks to the direct student loan option, more and more people are able to pursue higher education than ever before. Why not apply for one of your own today? The sooner you fill out your application, the sooner you may be on your way to getting that degree you’ve been dreaming about.

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