Direct Loan Application
The direct loan is a low interest federal student loan that helps students and parents pay for the cost of college. All direct loans are through the Department of Education’s Direct Loan Program. The Health Care and Education Reconciliation Act of 2010 made the Direct Loan program the only lender of Direct Student Loans and dismissed the FFEL Student Loan Program.
Direct Loans consists of both the Subsidized / Unsubsidized Stafford Loan and the Graduate / Parent Plus Loan. Both undergraduates and graduates attending an approved Title IV post-secondary education institution are eligible to receive the subsidized and unsubsidized Stafford loan. Parents interested in borrowing a loan for their child’s education or graduate students looking for additional money to pay for school can apply for the Plus Loan.
Parents that want to pay for their child’s undergraduate education should apply for the Parent Plus Loan, while graduate students wanting additional money to pay for their education should apply for the Graduate Plus Loan.
The direct loan is a low interest federal student loan that helps students and parents pay for the cost of college. All direct loans are through the Department of Education’s Direct Loan Program. The Health Care and Education Reconciliation Act of 2010 made the Direct Loan program the only lender of Direct Student Loans and dismissed the FFEL Student Loan Program.
Direct Loans consists of both the Subsidized / Unsubsidized Stafford Loan and the Graduate / Parent Plus Loan. Both undergraduates and graduates attending an approved Title IV post-secondary education institution are eligible to receive the subsidized and unsubsidized Stafford loan. Parents interested in borrowing a loan for their child’s education or graduate students looking for additional money to pay for school can apply for the Plus Loan.
Parents that want to pay for their child’s undergraduate education should apply for the Parent Plus Loan, while graduate students wanting additional money to pay for their education should apply for the Graduate Plus Loan.
In order to qualify for a Direct Subsidized/Unsubsidized Stafford loan, students/parents must complete the FAFSA, which is the Free Application for Federal Student Aid. This direct loan application determines how much your family is able to contribute to your college education based on current income and total family assets. It also takes into account if other dependent family members are attending a post-secondary institution. The direct loan application, FAFSA, is the main application needed to apply for a Direct Plus, Subsidized, and Unsubsidized Stafford loan.
The Direct Subsidized Loan is based on financial need and is available to students considered low-income. Subsidized Loan interest does not have to be repaid while the student is still in school. Once the student graduates then the borrower is responsible for all interest payments. The Direct Unsubsidized and Plus Loans are available to any student interested in receiving additional money to pay for their education. Both the Unsubsidized and Plus loans are not need-based loans, so anyone is eligible to qualify.
Once the FAFSA is completed and submitted, the prospective borrower will receive a Student Aid Report (SAR) from their school’s financial aid office indicating if they are eligible to receive any federal financial aid. Within the report, they will see an EFC score, also referred to as the Expected Family Contribution score. This number determines the total direct loan amount the borrower is eligible to receive for the upcoming school year.
Students eligible for a Subsidized Stafford Loan must have a low EFC score to qualify. The lower your EFC score, the higher the chances are that you will receive a Direct Subsidized Stafford Loan. The minimum EFC score needed to receive a Subsidized Stafford Loan changes every school year, so please contact your school’s financial aid office to receive an EFC score update.
Once the FAFSA is completed and submitted, the prospective borrower will receive a Student Aid Report (SAR) from their school’s financial aid office indicating if they are eligible to receive any federal financial aid. Within the report, they will see an EFC score, also referred to as the Expected Family Contribution score. This number determines the total direct loan amount the borrower is eligible to receive for the upcoming school year.
Students eligible for a Subsidized Stafford Loan must have a low EFC score to qualify. The lower your EFC score, the higher the chances are that you will receive a Direct Subsidized Stafford Loan. The minimum EFC score needed to receive a Subsidized Stafford Loan changes every school year, so please contact your school’s financial aid office to receive an EFC score update.
Parents that are applying for a Parent Plus Loan must complete a Direct PLUS Loan application and promissory note, contained in a single form that you get from your schools financial aid office along with the FAFSA application. Also, Parents generally will be required to pass a credit check. Parents with poor credit might also qualify for a loan without passing the credit check if they can demonstrate that extenuating circumstances exist. Parents that apply for a Parent Plus Loan will receive an award letter indicating how much money they are eligible to receive from their child’s school.
Graduate students are also requested to complete and submit a Direct PLUS loan application and promissory note. A credit check will also be completed to determine the student’s creditworthiness. Grad students with poor credit, but still are interested in a Graduate Plus Loan should contact their school’s financial aid office if their poor credit is due to extenuating circumstances.
Obtaining a Direct Loan is a great way to pay for your post-secondary education. All Direct Loan recipients are able to take advantage of low interest rates because the federal government subsidized a portion of the accrued interest. This subsidy benefits all Direct Loan borrowers, since it lowers the cost of the overall loan. When searching for financial aid, make sure to apply and complete the FAFSA, which is also referred to as the Direct Loan application.
Direct Loan Application | Apply for a Direct Loan |
Other Useful Financial Aid Sites: Direct Loan | Direct Loans Forbearance | Direct Loan Repayment | Direct Loan Forgiveness | Direct Loan Application | Federal Direct Loans | Stafford Loan |
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Graduate students are also requested to complete and submit a Direct PLUS loan application and promissory note. A credit check will also be completed to determine the student’s creditworthiness. Grad students with poor credit, but still are interested in a Graduate Plus Loan should contact their school’s financial aid office if their poor credit is due to extenuating circumstances.
Obtaining a Direct Loan is a great way to pay for your post-secondary education. All Direct Loan recipients are able to take advantage of low interest rates because the federal government subsidized a portion of the accrued interest. This subsidy benefits all Direct Loan borrowers, since it lowers the cost of the overall loan. When searching for financial aid, make sure to apply and complete the FAFSA, which is also referred to as the Direct Loan application.
Direct Loan Application | Apply for a Direct Loan |
Other Useful Financial Aid Sites: Direct Loan | Direct Loans Forbearance | Direct Loan Repayment | Direct Loan Forgiveness | Direct Loan Application | Federal Direct Loans | Stafford Loan |
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