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Understanding Direct Student Loans

Education in a university after secondary education sometimes becomes a problem for parents or for the students themselves due to financial restraints. The government of the United States of America is very much aware of this situation, and is willing to help deserving students through their direct student loans.

Direct student loans were established in 1993 to help out students pay for their college education, with very low interest rates and a very reasonable time frame to pay for the loan. This program is also known as direct loan program.

The main objective of direct student loans is to give financial assistance to students who would like to go to vocational, undergraduate, and graduate postsecondary school students, but do not have enough resources to do so. This direct loan is being given by the Federal government, instead of students running to private lenders that shell out money for a very high interest rate.

All American citizens are eligible to apply for direct student loans. The applicant must be a student at the time of application, and is on half- time basis. An eligible student is good for direct student loans for a twelve month period. The Direct PLUS program allows parents to borrow for their children. For subsidized grants, the borrower undergoes a financial need analysis to gauge if eligible for federal interest. A student who is enrolled and is under a direct student loan must have excellent academic standing.

Repaying the direct student loan depends on the type of loan. Some allow parents for deferred payments until their child graduates, or drops below part- time enrolment status. Direct student loans usually allow six months to nine months, and one direct student loan allows repaying based on the family's income. It is important to be able to pay on time, as payments that do not go with the schedule usually has serious consequences. Interest rates may also vary, depending on the loan type.

The government also offers a work- study program that gives the student a job that will help him earn money for paying for his college education. The students are being designated in jobs that are related to their chosen field of study, and some are inside the campus that allows students to study while working. The state minimum rate is being implemented, and pay out schedules are at the minimum of once a month. This type of employment is great, as it allows the student to balance work and studies. It teaches the student the value.

Direct student loans aid a big deal in helping students who wish to pursue their dreams, but do not have much of the means to support college education. These loans by the government are effective in realizing the potential of a student. Life's possibilities should not be limited because of financial downsides. Why should a student's dream stop if there are means to support it, just like what the Federal government is now providing for students with great skills and potentials?