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College isn’t easy. The increasing cost of education is leading many Americans to have to deal with their budgets. It is the U.S. government that seeks to meet the needs of many American families to provide education to their children following high school with an initiative that provides students loans directly to help them pay for their college tuition.

In the course of the program, the government is the only lender via the U.S. Department of Education. The program is known as the Direct Loan Program. The direct Loan Program has been in operation since 1993.

The idea behind the program was to offer low-interest loans to parents and students. They are provided by the department of education instead of banks or other financial institutions.

Because it is provided directly through the federal government the borrowers will have only one point of contact for all transactions relating to the repayment of their loans, which is that’s the Direct Loan Servicing Center – even if they took the loans from different institutions.

It provides a variety of loans and repayment plans that parents and students can select from based on the requirements of each borrower.

Students can avail direct unsubsidized or direct subsidized loans, while parents and graduate students can apply for the Direct PLUS loan read review. This program also provides direct consolidation loans to borrowers who wish to consolidate their loans with lower fixed rates.

A few of the repayment plans are the standard repayment plan, which is designed for those who can afford more each month and wish to pay back their loans for up to 10 years at a quicker rate. The extended repayment plan allows for a longer repayment period of as long as 25 years.

In terms of rates, unsubsidized and subsidized loans that were paid out after July 1, 2010, typically have a fixed rate of interest. The interest rate for loans that are subsidized to undergraduates, however, may be based on the date when it was disbursed for the first time.

The distinction between subsidized and unsubsidized loans is primarily based on the capacity to pay for the borrower. In the case of subsidized loans, the government offers assistance to students with low incomes by paying the interest on their loans within a set grace period. Unsubsidized loans are available to borrowers who can pay their loans with no assistance from the government.

In certain instances, the government might decide to forgive or discharge certain loans read review. This is especially common for workers in the public service sector. Also, those with disabilities may be able to benefit from government loan forgiveness programs.

Direct loans from the Federal government are being provided by the government to give students a variety of ways to finance the cost of their education. Students should look into the various aid packages that are available under their requirements.