In order to qualify for being awarded a direct student loan you should attend the classes of a school that takes part in the Direct Loan Program and after that consider to fill out a FAFSA and sing a Master Promissory Note – MPN. In case the student who makes the loan needs to consult a counselor, than he or she can obtain these sorts of services at Direct Loan Servicing site.
What are the services that are at the direct student loan holders’ disposal?
At the Direct Loan Servicing site you, as one of the direct student loan holder, can get your own account. Through this account you will be able to monitor the records of your own payments. On the same site you can find records on the balance that is owed by each of the direct student loans that you have made.
Once you have been approved to obtain a direct student loan, then you should know that you have at your disposal the Service Center through which you can makes use of the electronic correspondence upon request allowing your to receive information on your bills and many other useful info. The Service site is also there to assist you free of charge to make the loan payments. These payments can be scheduled with 6 months in advance.
What are the types of direct student loans?
Some students that have been awarded a direct student loan are in a possession of subsidized Stafford loan that has an interest subsidy. The students awarded with these direct loans can benefit from the government help to pay the interest until they graduate.
But not all Stafford loans are direct student loans which in their turn not all are subsidized. If the government establishes that the student is not in a huge need of the loan, the student might get awarded an unsubsidized (without interest subsidy) Stafford loan.
There are also PLUS loans that are low interest loan offered to graduate students as well as parents. If you want to apply for this type of direct student loan, then you should submit an FAFSA and an MPN.
What are the factors to determine the direct student loan size?
A sure thing is that no direct student loan is similar in size with another as the amount to be awarded is offered in accordance with three factors:
* The costs involved in studying will largely determine the size of the direct student loan.
* The amount will be adjusted in accordance with the student’s needs for another financial aid.
* The contributions of the student’s family are also expected and as a result this fact might influence the amount of direct student loan granted by the government.
After all these factors have been thoroughly checked by the Department of Education, then the student will be provided with a settled amount corresponding to these factors, amount that is meant to cover the tuition costs.