Welcome to Student Loans Guide
Student Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Direct Student Loans – A Helping Hand
from:Direct student loans, also known as direct loans, are monitored by the William D. Ford Federal Direct Loan Program. These direct student loans are designed to help students that have graduated from high school and are continuing their education in colleges, universities or trade schools. Direct student loans are part of the Federal Student Aid program of the Department of Education and are not offered through private lenders or companies. The loan agreement is between the student and the Department of Education, without any agencies in the middle.
Students that want to apply for direct student loans must complete a FAFSA or Free Application for Federal Student Aid over the internet and submit all required information and documentation. In addition each student will also have to complete a MPN or master promissory note. This is the document that is the legally binding contract between the student and the Department of Education with regards to how the loan will be repaid as well as the specific terms and conditions of direct student loans. There is additional information available through the Department of Education website that details and fully explains all the terms and legal clauses in the master promissory note.
To be eligible for direct student loans the school must be part of the direct loan program and the student must be enrolled at least part-time. Not all students will receive subsidized direct loans, some will be unsubsidized. Typically students with very few resources and with greater financial needs will qualified for subsidized loans, which means that no interest will be charged on the loan while the student is in school or during the grace period or any deferment time.
Students that are dependent, or have parents that are able to help pay for schooling are eligible for lower direct student loans than students that are considered independent. Independent students may be students that have families of their own to support, have no living parents to assist with educational funding or students that are otherwise without financial support. Graduate students can also apply for direct student loans under the same criteria as applying for a Stafford loan, with some of this total possible being subsidized. Typically graduate direct loans have a limit on the total amount of the loan that can be provided interest free during school, grace periods and deferments.
Direct student loans have a fixed interest rate that is set every July 1st. These loan rates have a cap however there is also a loan fee that can be up to 4% of each direct loan. This fee is used to offset the cost of the program for future students.
Student Loans Specific links
Student Loans News
What's that sound? Student loan debt tick, tick, ticking up. - Washington Post
 New York Times (blog) | What's that sound? Student loan debt tick, tick, ticking up. Washington Post Now there's another clock, only this one is online, ticking away the amount of student loan debt being amassed by college students and their parents. ... Student Loan Debt Clock Ticks Past $848 Billion The Student Loan Debt Clock Student Loan Debt Outpaces Credit Card Debt in US |
7 strategies to avoid the college debt trap - Washington Post
 Washington Post | 7 strategies to avoid the college debt trap Washington Post At FinAid.org, you can use the Student Loan Advisor calculator to determine the monthly payment amount based on a future salary. ... |
Your Kid's College Loan: Who Should Foot The Bill? - San Francisco Chronicle
 HealthNewsDigest.com | Your Kid's College Loan: Who Should Foot The Bill? San Francisco Chronicle But after reviewing your finances and potential scholarships offered, you may realize that student loans will be required to pay for part or all of the cost ... Student financial aid flubs A Lesson About Avoiding Student Loans Which students are best at paying back college loans? |
Student Loan Scrutiny Could Hurt Washington Post - BusinessWeek
Student Loan Scrutiny Could Hurt Washington Post BusinessWeek With the company's media business still hurting, a crackdown by the Obama Administration on student loan repayment rules could threaten Kaplan's outlook. ... |
A fairer deal for college students - Washington Post
A fairer deal for college students Washington Post For many students, defaulting on student loans is not the end of their struggles. Student loan debts are not dischargeable in bankruptcy, and defaults ... Sen. Durbin Wants For-Profit Schools to Share Student Loan Default Risk Feds Seek More Oversight Over For-Profit Colleges Despite Scrutiny of For-Profits, Crucial Questions Are Unanswered |