Homepage

 

 

Directory Categories

 

Informative Articles


Direct Loans 101

By John Williams

Direct loans are convenient, flexible and simple. A Direct loan is a loan by a lender to a customer without the use of a third party. This type of loan enables the lender to have greater discretion in the distribution of loans. Typically the lender is the U.S. Department of Education rather than a bank or financial institution. The federal government provides four types of direct loan financing.

These direct loans vary in criteria and repayment schedules:

• The Federal Direct Subsidized Stafford/Ford Loan is a direct loan, which means you do not pay the interest on the loan while you are school at least part-time. This particular type of Direct loan is based on the student financial need in accord with federal regulations.

• The Federal Direct Unsubsidized Stafford/Ford Loan is a direct loan the government charges you interest while you are in school. The student does not need to be in extreme financial need to receive this type of loan.

• The Federal Direct PLUS loan is a direct loan designed for parents without an adverse financial history who wish to borrow money for their dependent student. In order for a student to be dependent he or she may not be 24 years or older, a graduate or professional student, someone with legal dependents, an orphan or a ward of the court. Parents of independent students are not eligible to apply for this type of loan.

• The Federal Direct Consolidation loan is a consolidation of one or more federal loans combined into a direct loan. A single monthly payment is made to the U.S. Department of Education. It is to the student’s advantage to consolidate, due to lower interest rates.

Direct loans give you the simplicity of having one contact for concerns with your financial assistance. You are able to have access to your Direct loan information on-line 24 hours a day, 7 days a week. You are given the flexibility to choose your repayment options and are able to change your schedule as your needs change.

About the author:
Check out the direct loans blogger at http://directloans.blogspot.comHe reviews direct loans and interprets complicated financial data into simple to understand language.


Circulated by Article Emporium




 Search

 Sponsor Categories

 Sponsor Links

 

Recommended Books

 

cover The Loan Officer's Practical Guide t...
Thomas Morgan
 
cover So You Want to Be a Mortgage Broker
Ameen Kamadia
 
cover Real Estate Riches
Dolf de Roos
 
cover Home Buying for Dummies
Eric Tyson
 
cover The Loan Officer Guide, Vol. I
Fredrick R. Willia...
 
cover How to Go to College Almost for Free...
Ben Kaplan
 
cover Mortgage Encyclopedia
Jack Guttentag
 
cover Paying for College Without Going Bro...
Kalman A. Chany
 
cover Financing Secrets of a Millionaire R...
William Bronchick

 

 

Copyright © 2007 Asteroidsearch.com