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Tags: finance, student loans, direct student loan
 Are you worried about not finishing your college education on time? Is money the main reason why you can’t continue your studies? If you answered yes to all these questions, then stop worrying. Welcome to the real world. Bear in mind, you're not the only one with the same problem.
There are also students who lack funds in order to support them throughout their college life. What you will do is to avail student loans. Student loans can be obtained from different sources. There are various private lending institutions offering the said loan services. However, the US Department of Education has come up with a program to help financially deprived students.
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The loan is also known as direct student loan. It can be directly availed from the federal government. What’s pleasant is the terms and conditions. Unlike private student loans, the interest charged is lower. The program is intended to assist student financially. It will give opportunity to those college students who are determined in continuing their education.
The high costs of tuition fees and other related expenses pose a burden on most students. Majority of students availing loans came from low-income families. Even working students are dependent on loans in order to survive college life. With the help of direct student loan, they will be able to pay off necessary expenses.
If you are interested in applying, just inquire to the US Department of Education. You will be filling up forms. Expect though for some interview. You will be asked some personal questions and other matters. In the said interview, it’s like a counseling session where you will learn about your obligation and the entire loan process.
Actually, there are two kinds of direct student loan you can choose from- subsidized and unsubsidized. Subsidized direct student loan is a need-based loan where financial capability of a student is determined. What makes this kind attractive to students is with regard to the interest. Students need not pay the interest during the duration of academic term.
The interest rate is also quite low compared to unsubsidized loans. Instead, the federal government will be paying for the interest. On the other hand, unsubsidized student loan is open for eligible students. The interest will be paid by the students themselves according to the repayment plan. You can also opt to defer your payments.
However, a penalty is imposed in deferring the payment period. In direct student loan, the repayment period can go as long as 25 years. The federal government also gives extensions. The amount of the loan will depend on a lot of factors. The class level where you belong is one aspect to consider.
If you are in the higher class level, the amount will be much higher. Another thing is the degree of financial dependence. If you are still dependent on your parents, the amount is lower compared to financially independent students. So, don’t be in despair about your situation, a direct student loan is just what you need.
If you really want to finish your college education, there will always be a way.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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