Direct Student Loans - Your Government Is Here To Help!

Direct Student Loan - A student who is awarded one in all the direct student loans must be attending a faculty that participates within the Direct Loan Program. That student should 1st complete a FAFSA, and then he or she should sign a master promissory note (MPN).


If the loan recipient then must speak with a counselor regarding the loan, those services are often obtained at the Direct Loan Servicing website.


Services Available to Holders of the Direct Student Loans

At the Direct Servicing site, the holder of a direct loan can set-up an account. Using that account the holder of a direct student loan can view the record of his or her payments. That site also contains records on the balance owing for each of the many direct student loans.

Anyone who has been awarded one of the direct student loans can use the Service Center to request use of electronic correspondence for the sending of bills and other information. Loan payments can be made free of charge from the Service Site. Payments for any of the direct student loans can be scheduled as much as 6 months ahead of time.

The Various Types of Direct Student Loans

Some students with a direct loan have a subsidized Stafford Loan. The subsidized loan has an interest subsidy. All students awarded those direct loans can count on the government to cover their interest payments while they are still in school..

Not all Stafford Loans are direct student loans, and not all direct student loans are subsidized. Where students do not show tremendous need, the government might award an unsubsidized Stafford Loan. Such unsubsidized loans do not come with an interest subsidy.

PLUS Loans represent a third type of direct student loan. PLUS loans are low interest loans for graduate students and parents. As with the other direct student loans, the application for the PLUS Loans entails submission of a FAFSA and a MPN.

Factors That Determine the Size of the Direct Student Loans

Not every student who receives one of the direct student loans gets the same amount of money. The amount of money awarded to the recipient of a direct student loan depends on three different factors.

The school costs will dictate to a large extent the size of the direct student loan. The government will also adjust its loan amount to account for any other aid that a student might expect to receive. Finally, the distribution of funds for the direct student loans depends on the expected contributions from each student's family.

After the Department of Education has examined those three factors, then it will provide a needy student with funds that should adequately cover his or her tuition costs.

Most students can get-by with loans of $8,000; they then obtain added money from additional on and off-campus sources.

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