Department of Education

With the costs of higher education skyrocketing, many students are turning to Department of Education Student Loans to help finance their college costs. The Department of Education has a variety of loans available for students wishing to pursue their college education. Three types of loans available from the DE are Direct Loans, Stafford Loans, and PLUS Loans for Graduate and Professional Degree Students. The number of loans available under the Department of Education Student Loans program is large, so it is in your interest to find out about all other types of federal student loans via the Internet.

The Department of Education Student Loans known as Direct Loans are low-interest available for students and their parents to assist in paying for the student's cost of higher education. It is made directly with the Department of Education, instead of a bank or other type of financial institution. A major advantage of these types is that you have a single contact for all issues, even if you switch schools.

Under the program, there are four types available. The first is the Direct Subsidized (DSL), for students demonstrating financial need according to federal regulations. The DSL is interest free during the student's school attendance of at least part time, grace periods and deferment periods. The Direct Unsubsidized (DUL) differs greatly with the DSL, in that it is not based on financial need and interest is always being charged on it (even while student is in school). The Direct PLUS (DPL) are special ones made to the parents of dependent students, as well as for graduate or professional students. Interest is also charged during all periods in a DPL. The fourth type is under the Direct program is the Direct Consolidation(DCL) which allows you to combine all your eligible federal government student borrowings into one single application. The eligibility requirements for each loan differ, so it is best to be informed about the various types of loans available and their specific interest and loan payment terms.

Department of Education Student Loans, known as the Stafford Loans, are one of the most common and low-cost methods of paying for learning at an institution of higher learning. These federal loans are fixed-rate loans for undergraduate and graduate students attending college at least on a part-time basis. For undergraduate students, the Stafford Loans offer a fixed-interest rate of 5.60% and the loan can be used to pay for tuition and other related school expenses. The maximum amount that a graduate student, in school at least part-time, can borrow under Stafford Loans is $20,500.

The PLUS Loans for Graduate and Professional Degree Students (GradPLUS) is a low fixed-interest loan that is guaranteed by the federal government. The interest rate is 8.5% and is deferred if you are in school at least part-time. A co-signer is not required and the interest on the loan is tax-deductible. While this type of loan is not based on income level, borrowers are required to pass a credit check.

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