Direct Student Loans

For students who wish to take direct loans for educational purposes, the government is on standby to help them have easy access to such loan facilities. However, the student needs to find out if the intended school is a participant of the Direct Loan Program. It becomes easier if that person wishes to apply for a direct student loan through the school. After confirming the above, the student will complete a FAFSA form before signing an MPN or Master Promissory Note to the same effect. If there is a need for the counselor to talk to the student, direct loan services like financial advice and website registration can be added. The services are available to holders of such direct loans for example on the site where a student can set up an account. From the online account, the direct loan holder can see records of their payments.

The site also has records of all the monies being owed by the student for all other existing loans. Any student who is granted a direct student loan can have access to the Service Center where they can use electronic methods of correspondence to send bills, etc. There are free services from the Direct Loan Service Site where loan payments can be made. Schedule for direct loan payments for as far as six months ahead can be made too. There are certain factors that help determine the amount of direct student loans that can be granted at a time. This is because not all students who apply for direct student loans are given and some may not even get the exact amount they request for.

The amount of money granted to a student as direct student loan depends mainly on 3 factors. The cost of attending the school is one major factor that affects the amount given as direct student loan. The amount requested by a student may be different from the one given by the government. It is the reason why federal loan forms ask recipients to state other sources of financial aid they expect to receive or are already collecting. The contribution from the recipient’s family members is also a determinant that affects the total amount given as direct student loan by the government. The Department of Education examines the 3 factors stated above before granting the needy student with the estimated amount of funds being sought. However, the funds given must be able to take care of tuition fees and living expenses above all else.