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Direct Loan Education

Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time.

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As the cost of college continues to rise, so does the need for direct loan education to help students in need of financial aid realize that they can pay for college. The National Center for Education Statistics estimates 50% of undergraduates leave college with over $10,000 dollars in student loan debt in the year 2008. At a time when American families already live with the strain of debt, and especially in today’s uncertain economy where inflation and gas prices increase daily, loans may seem like just another burden for students and parents looking to pay for college.

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Although the terminology and procedures might seem unclear and vast to prospective or even current students, allocating direct loan funding is truly a breeze when one is an avid and eager learner. Researching throughout internet sites on multiple forms of direct education loans are good steps in giving one’s self direct loan education and information.

Some well-known types of direct loan titles include:

  • Pell grants
  • Stafford loans
  • PLUS loans
  • Consolidation loans
  • Federal work study loans
  • Perkins loans

This is just not the reality of the situation. Most students are not aware of the different types of loans that are available. Even fewer students understand the significant benefits that come with borrowing money from the US Department of Education through direct loans. With a little direct loan education, students and parents will garner a much clearer picture of how to finance the college experience of their dreams. Interested parents and students having direct loans can eventually save thousands of dollars in college expenses, not to mention a host of repayment benefits and low interest rates.

According to the Department of Education in 2008, rates for government offered student loans are generally the most competitive for interest rates and most flexible for repayment terms. The Department of Education, for example, offers a fixed interest rate of 6.8% for all Stafford loans disbursed after July 1, 2006. Checking with private lenders’ rates offers credence to the fact government loans can save students thousands of dollars over the course of repayment. Currently, the direct PLUS loans are available with the incredibly low fixed interest rate of 8.5%. These are just some examples of the interest rates offered, but keep in mind personal credit scores as well as any consignor credit scores will greatly influence final interest rate terms. Researching as much information as possible on potential direct loans can help prospective students accurately assess their eligibility for direct loans as well as the associated interest rates.

Another appealing aspect of Department of Education direct loans includes the flexible repayment options. Direct loans offer a host of options for student and parent borrowers that private lenders do not or cannot. Options such as deferred repayment while in school, extended repayment in the face of financial hardship, and easy annual renewal loans allow students to clear their mind of financial worries and focus on their academic activities. Following graduation, the convenient and understanding repayment terms continue for those involved in with government direct loans. Post-college repayment options include a fixed monthly amount, graduated repayment plans, or income contingent repayment plans. Out of all the potential lending options, federally funded loans help students pay back their loans with the least amount of financial stress following graduation.

In the event you or a loved one has achieved the dream of being accepted to college, but do not know how to pay for it, direct loans might be the answer. Failing to be proactive in seeking more information and applying for federal direct loans for college could prove devastating to those wishing to pursue a collegiate career, but unsure on how to afford doing so. Be proactive in pursuing your education today and reap the rewards of tomorrow.

Do you need a direct loan education?
Apply for a direct loan education today.