DIRECT STUDENT LOAN PROGRAM:Highlights

The U.S. Department of Education dispenses Student direct loans. The Direct Loan program consists of two kinds of loans -for students and for their parents.
Schools generally participate in the Direct Loan program. Under the Program you can get funds for your loan directly from the federal government. If you want to get a Direct Loan you should fill out a FAFSA. After that your school reviews your results and informs you about your eligibility for the loan. Then you’ll have to sign a loan note, a document that includes the exact conditions and terms under which you have to pay back the money you’re borrowing.

The exact amount of loan depends on the year in school and if you are going ?r not to get a subsidized or unsubsidized loan. The first one is awarded on the assumption of financial needs. If you get it the government will pay the interest while you study at school, as well as for the first six months on graduating.
If you don’t demonstrate any financial need you also can borrow money. But in that case you may receive only an unsubsidized loan. It means that you are responsible not only for the loan but for the interest as well. You can pay the interest regularly or let it accumulate and be capitalized. Don’t forget that capitalizing will increase the total amount you have to pay back. Also you may visit Homeowner Loans site.