Us Department Of Education Direct Loan

Written by Mark Sanfilippo
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To put it simply, the US government has done a very good thing with its Department of Education Direct Loans. These loans are fairly straightforward, offer few penalties, and to top things off, you only have to fill out one application for them. In addition, the Department of Education allows some very flexible repayment plans.

Direct Loans are a program under the Department of Education. These are actually considered one the of Federal Student Aid programs that are housed within the Department of Education. Students can apply for a Direct Student loan through the financial aid office of their college or university. They will simply fill out what is called a Free Application for Federal Student Aid or FAFSA form.

Many people don't know this, but when you take out a Federal Direct Student loan, you're actually borrowing money from the government. Most assume that the government is a go between for a bank, but this is simply not true. The money comes from the auction of Treasury bills, hence the term "direct."

Repayment Plans Offer Freedom of Choice

One of the greatest things about the US Department of Education Direct Loans is that they have such flexible repayment plans. They have graduated plans that allow you to pay back the money in increasing increments over several years, and they also have an income contingent plan that works with you to find a repayment schedule that fits your income level. You can even switch repayment plans at any time without any fee whatsoever.

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