Student Direct Loans
Student Direct Loans are one of the various federally funded student financial aid programs that provide a relatively easy way for college students to get the help they need to pay for college.
This program is offered through the Department of Education and is a loan program. This is different than the government educational grant program in that the student is responsible for paying the loan back after they graduate from college. Government education grants, on the other hand, do not need to be repaid.
Student Direct Loans are run through the U.S. Department of Education, where the government acts like a lender. That means you incur interest and must repay the loan. Just like a car loan, you borrow money and pay it back.
The benefit over borrowing money from a private lender is the flexibility with the repayment plan. There are a number of plans that are based upon your income, and those plans can be adjusted as your needs change. The amount you can qualify for is based upon your tuition costs, other financial aid you may be receiving, amongst other things.
The downside is that your loan amount will incur interest and there are fees involved. Loan amounts are generally relatively small and will typically only pay a small portion of your tuition. This program is also not available for part-time students, so returning students who have a full-time job usually don’t meet the minimum qualifications.
Lastly, you must repay the loans no matter your outcome. If you cannot find a job in the field you studied after you graduate, you must still repay. If you are not happy with the degree you are pursuing and decide to shift gears, you must repay in full. If you are unable to complete your degree program and college education, you are still responsible to pay back the loan. This repayment starts six months after you are no longer a full-time student.
The alternative is to apply for student grants, which are also offered by the government but have more attractive terms. To begin with, this is free money and not a loan. Since a grant is money that is awarded to you and not a loan, there is no obligation to pay back the money.
As long as you use the money for educational purposes, it doesn’t matter if you change degrees, don’t finish college, or are unable to secure a job. Once you are approved and you receive a check in the mail, the money is yours to keep as long as it is used to assist with educational expenses.
There are no limits on the number of college education grants that you can apply for and receive. It is possible to have your entire college paid for by the government. All it takes is searching the database and submitting your application. There are thousands of programs based on a wide criteria, so the chances for approval are in your favor.
To start, request access to the government grant database by requesting a grant kit.
In: Pursuing an Education · Tagged with: Student Direct Loans