Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department), though the entity you deal with, your loan servicer, can be a private business.
With Direct Loans, you
- Borrow directly from the federal government and have a single contact—your loan servicer—for everything related to repayment, even if you receive Direct Loans at different schools.
- Have online access to your Direct Loan account information via your servicer's website.
- Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
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Applying for Direct LoansA quick introduction to Direct Loans and how they fit into your award package. |
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While you're in schoolHow the school disburses (pays out) Direct Loans to you and your rights and responsibilities while you're in school. |
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When you graduate or leave schoolThe things you need to do when you graduate or stop attending at least half-time, including exit counseling and choosing a repayment plan. |
While you're in repaymentYour rights and responsibilities while you're repaying your Direct Loans, including deferment and cancellation options. |
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► Interest rates
Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2011, and June 30, 2013:
3.4%
Direct Subsidized Loans for graduate students and Direct Unsubsidized Loans for all students:
6.8%
Direct PLUS Loans:
7.9%