Loans Guide

For Student Loans Section


 


Social bookmarking
You like it? Share it!
socialize it

Newsletter

Subscribe to our newsletter AND receive our exclusive Special Report on Loans
Email:
First Name:



Main For Student Loans sponsors


 

Latest For Student Loans Link Added

INSERT YOUR OWN BANNER HERE

Submit your link on For Student Loans!



 

Welcome to Loans Guide

 

For Student Loans Article

Thumbnail example. For a permanent link to this article, or to bookmark it for further reading, click here.

´╗┐Direct Loans For Students

from:


Direct loans for full and part time students are an alternative loan option that typical Stafford or Perkins loans that are done through private loan companies by the federal government. Direct loans differ from these loans because the funds are provided directly from the Department of Education to the student, without the use of a loan company or agency. Direct loans are very similar to the typical Stafford or Perkins loans and can be either subsidized or unsubsidized, depending on the financial ability of the student and what type of loan they will qualify.

Students applying for either federal government student loans or direct loans have to complete the same process, which starts with completing an online FAFSA or Free Application for Federal Student Aid. This form will identify the student as either dependent, or requiring information and signatures of the parents, or independent, not requiring this information. It will also provide information on the schools you are considering as well as the amounts of loans that you can qualify for based on all other types of grants, scholarships and other funding sources. Once you have received your
SAR or student aid report and your school also receives the same information you are then able to decide if direct loans are the best option.

One difference between direct loans for students and traditional federal government loans is that all students are required to sign a Master Promissory Note or MPN. This note basically is a contract stating that you will pay back the loan to the Department of Education as per the terms of the loan agreement. There is no option to modify these conditions once the MPN has been signed and submitted, so it is very important to ensure that you understand all terms and conditions contained in the terms of the loan.

All direct loans are capped at a specific amount per year, depending on whether or not the student is categorized as dependent or independent. Independent students receive a higher loan amount per year, although only a portion of that amount can be subsidized. Subsidized loans do not get charged interest while the student is in school as well as during grace and deferment periods of the loan. Dependent students may or may not be subsidized up to the total amount of the loan per year.

Direct loans have a set interest rate, plus they also have a loan fee that will be up to four percent of the total amount of the loan. This loan fee is used to help keep the program functioning plus it will also help to balance out any differences in the fixed interest rate of the loan over the variable interest rate of the market.





Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Deprecated: Function eregi_replace() is deprecated in /home4/marcilio/public_html/loan/loans/datas/persobanner_center.php on line 21

Other For Student Loans related Articles

Consolidation Loans
Home Loans
Loans
Unsecured Loans
Mortgage Loans

Do you want to contribute to our site : submit your articles HERE


For Student Loans Specific links

For Student Loans News