Federal Direct Student Loans


Federal direct student loans are loans made through the United States government Department of Education. These loans enable students to get funding for college in order to get a good education and obtain a suitable job. With today's competitive job market, a college degree is essential. The days of well paying jobs for people without a degree are fast dwindling so it is important or high school students to seriously consider going to college. Even older people who have been in the job market for awhile can improve their marketability by obtaining a degree. With a degree as well as work experience, you will be able to increase the earning potential substantially. Many people who are considering college, though, look at the high costs and decide they can not afford to go.

Federal direct student loans provide the means for going back to school or starting school. Although the entire tuition, books and housing may not be fully covered, a substantial portion will be. The federal direct student loans do not need to start getting paid back until six months after graduation or if you fall below half time enrollment ant a college or university. This allows the student ample time to graduate and begin looking for a job which will help pay off the student loans. The idea behind it is to let the student graduate and find a job that utilizes the degree. The student will then have an increased salary and will be able to easily pay off the loan. Loan payments are not a lot and if you can afford to pay more on the principle, this is advised so you can get the entire thing paid off more quickly.

Federal direct student loans can also be taken out by parents, grandparents or other direct relatives in order to help pay for the student's education. Before entering into federal direct student loans, there is a short entrance counseling session that needs to be taken. This lasts approximately thirty minutes and is valuable in showing you how to budget your college expenses. When you are about to graduate or leave college, there is a similar exit counseling session that outlines your rights and responsibilities in repaying your loan to the government. Federal direct student loans also manage deferments, forbearance and financial hardship issues. If you have problems with your loan, you should contact a counselor immediately for advice on how to handle it as there are several options available.


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