A Guide To The Federal Direct Student Loan Program


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In today’s competitive job market, a college degree is absolutely essential. The days where you could walk into a well paying job and carve out a lucrative career without qualifications are long gone. As a result more and more students recognize the importance of going to college in order to get the degrees. Even people who have been in the job market for a while recognized that if they want to climb up the career ladder they need to obtain a degree by going to college.
While a lot of people recognize that going to college and getting a degree combined with work experience can significantly increase their earning potential, they look at the costs involved and decide that it is just not practical and they can’t afford it.
The good news is that this might not necessarily be true and that funding is at hand through the means of Federal Direct Student Loans.
Quite simply 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.
They open up so many different opportunities for people from all sorts of backgrounds and economic situations. By receiving a Federal direct student loan it provides the means for going back to school or starting school.
It is worth noting that although the entire tuition, books and housing may not be fully covered during your time at college, a substantial portion will be making it a real affordable option. Another benefit is that the federal direct student loans do not require you to start paying the loan back until six months after graduation or if you fall below half time enrollment at a college or university. This gives you more than enough time to either settle into some employment after graduation or take on a part time job to supplement your earnings while you are learning.
The idea behind it is quite simple: to let the student graduate and find a job that utilizes the degree. The benefit is that the student will then have an increased salary because of their education and will then be able to easily pay off the loan. Thankfully, the loan payments are not high and if you can afford to pay more on the principle, then try to do so as you can get the entire thing paid off more quickly, allowing you to reap the full rewards of your salary each month.
Another huge advantage is that 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. A lot of parents and grandparents are keen to avoid their kids from obtaining debt before they have even stated work so this is a very popular option.
Your federal direct student loan isn’t handed on a plate to you though. In order to be eligible for a federal direct student loan, there is a short entrance counseling session that needs to be taken. It is nothing to worry about and shouldn’t put you off applying. It lasts approximately thirty minutes and is very valuable in showing you how to budget your college expenses so that you can make the repayments and start enjoying the full rewards of your salary as soon after your graduation as you can.
At the end of your college course 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.
What if your situation changes during your time at college? Again, don’t worry as Federal direct student loans also manage deferments, forbearance and financial hardship issues. If you find that you are having problems with your loan, you should contact a counselor immediately for advice on how to handle it as there are several options available and they will be very sympathetic to your case.
Overall, Federal Direct Student Loans give potential students from all sorts of backgrounds the opportunity to be able to obtain a degree that might otherwise have been impossible.


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