Direct student loan program
With new educational system, need for direct student loans is increasing. But, direct student loan program isnt open for every student. They are available to particular schools and colleges tied up with companies offering loan program. There are some special provisions for direct student loan program. Special provisions are usually in terms with payment options of the loan programs.
There are different types of direct student loan programs, students can choose from. Direct parent plus, consolidation, graduate plus and Stafford loans are some of them. All these types of loan programs have varied features.
Here is an account of features offered by these loan programs :
Direct parent plus loan program: These are special loans designed for students studying at undergraduate level. The loan can be availed by parents of the students. The highlight of the loan is credit rating. There isnt need of security and credit check, in order to apply for the loan. The rate of interest for this loan starts from 8%. The minimum repayment tenure is one year. And, maximum repayment tenure is ten years.
You can avail deduction in tax, for this loan, as its instigation fees is low. There are various repayment options in terms with this loan. You can choose from the best repayment options available. Graduate, standard and extended repayment options are some finest alternatives. All loan repayments are calculated based on interest rates.
Direct graduate plus program: These are special loans designed for students who have completed their graduate level. These loans can be individually availed by students. The rate of interest on the loan starts from seven percent. Maximum tenure for repayment of the loan is ten years. Credit rating is considered while approval of the loan amount. If students have bad credit rating, then its difficult to avail the loan easily. The application process of the loan is hassle free. There is no additional charges on processing of the loan amount.
Direct Stafford loan: This type of loan is well accepted among students. It can be categorized by unsubsidized and subsidized loans. Though, there is small difference between two types of loans. For subsidized loan, interest is paid by federal government at the time of actual repayment of the loan. In case, of unsubsidized loan, interest is directly levied at the time of actual approval of the loan amount. There are different repayment plans in case of direct Stafford loans. Graduated, fixed and extended repayments are some of the plans. At the undergraduate level, subsidized Stafford loans starts from $5500. And,in case of unsubsidized level, amount starts from $5000. Similarly,at the graduate level, subsidized Stafford loans starts from $8500. And,in case of unsubsidized level, amount starts from $12000.
There are several types of direct student loans easily available. You can choose your loan according to your requirements.
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