Major Overview of Direct Student Loans

Direct Loans Student Loans

Direct loans student loans are offered through the William D. Ford Direct Student Loan Program with the lender of these loans being the Department of Education. Direct loans student loans are 100 percent federal loans and are offere to students as well as parents of dependable students, in the form or low interest loans as well as many other benefits that can make your college education a lot more affordable. There are different options that one can choose from that can help you attain your degree all of them are discussed in full detail below as well as the repayment options that are available to you when you start paying off your loan.

Direct Loans Student Loans Offered

There are two different types of direct loans student loans offered through the Ferderal Direct Student Loan Program (FDSLP), those are subsidized and unsubsidized Stafford student loans. Each type is discussed below:


Stafford direct loans student loans that are subsidized are given based totally off the financial need of the student, meaning those who need them most tend to get them most. These loans provide benefits to the student like:

  • You do not have to pay any interest payments while in school as the government pays them for you, and you don’t have to pay them back if you are in full time enrollment.
  • 6 month grace periods where you do not have to pay your student loans for 6 months prior to your graduation.
  • You can defer these direct loans student loans as well which means that, which is an agreed postponement of your monthly loan payments.
  • These loans are offered at sums start at 2,625 for your first year, 3,500 for your second year, 5,000 dollars per year after you the completion of your first two years, and lastly 8,500 dollars a year for graduate students.


The ubsubsidized direct loans student loans option is not needs based meaning that it is much easier to qualify for, but it charges you with interest payments from day one, which can either be taken care of while in school, or paying them offer later when school is over. Here is the major information on unsubsidized direct loans student loans:

  • Interest rates start as low as 3.10 percent.
  • 6 month grace period is offered where you will not be charged interest as well.
  • There activation fee for the loan is 4 percent.
  • Borrowing sum totals are up to 4000 dollars for both first and second years of schooling, 5000 dollars per year after you complete your second year of enrollment which can be attained all the way up to graduate school, for graduate and professional students you can borrow up to 10,000 dollars per school year.

Direct Loans Student Loans Repayment Options

Direct loans student loans have 4 different repayment options which you can choose from, whichever one best suits what you can afford as well as how fast you want to pay it back. Here are the direct loans student loans repayment options:

  1. Standard Repayment – This option provides you with up to a 10 year repayment term.
  2. Extended Repayemnt – This direct loans student loans repayment method allows anywhere from 12 to 30 years of time for you to repay you student loans.
  3. Graduated Repayment – This option also provides a 12 to 30 year repayment plan and with this method your monthly payments increase every two years.
  4. Income Contigent Repayment – This last direct loans student loans repayment method is based on a percentage of your monthly income, usually having your monthly payments being set at 15 percent of you montly income.

Direct Loans Student Loans Deferment Options

If you want to defer your direct loans student loans, you need to prove one of the following categories:

  1. Economic Hardship
  2. Forbearance
  3. Default
  4. Disablility
  5. Unemployed

This is a main over view about direct loans student loans which can assist you in making your education more affordable and have provided millions of individuals with money to go back to school and further their education.