Federal Direct Student Loan



Federal Direct Student Loan by Department of Education is well known in U.S., offering low interest and long term student loan which helped many students obtain their bachelor degree and completed their study. Although many private student loans offer by private lenders in the market , but more peoples prefer to take Federal Loans. Lower interest rate is one of the main reason considered by borrower.

There are 2 types of direct student loans - subsidized & unsubsidized. The primary different between these 2 loans is there are no interest accrue to subsidized loan, the principal loan amount will be due after grace period or student leave the college or drop the study within 6 months of enrollment. While, the interest of the unsubsidized loan begin at the day loan amount disbursed until the end of the day of final settlement of the loan.

Subsidized or unsubsidized loan approval is solely depend on the judgment of the Department of Education. They will analyze individual situation and needs, in order to approve which loan type you will get. There are some cases, student get offer which combined of subsidized and unsubsidized loan.

Here is one of the website by government, click Direct Loan Website for more information. You may use the loan calculator provided, it's free.

The loan programs by federal government is not just funding for education. There are many consolidation programs as well, discover much information before graduate. You might need those programs in near future.

For more direct loan article, please check out Direct Student loans instead of Federal Direct Student Loan

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