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DIRECT STUDENT LOAN
The Direct Student Loan Program (DL) is one of the Federal Student Aid (FSA) programs offered by the Department of Education. It provides students with a simple, inexpensive way to borrow money to pay for education after high school.
If your school participates in the Federal Direct Student Loan Program, you'll then need to complete a master promissory note (MPN) to get a Student Loan. The MPN explains the student loan terms and is the legally binding agreement that you will repay the student loan Department.
The Federal Direct Student Loan Servicing site has online entrance and exit counseling tutorials that you can take if you are or will be a Direct Student Loan borrower.
About Federal Student Aid in general
The FSA programs comprise:
- Pell grants
- Stafford loans, available either through the Direct Loan (DL) Program or the Federal Family Education Loan (FFEL) Program
- PLUS loans for parents (also available through the Direct Student Loan Program or the FFEL Program
- Consolidation loans Program or the FFEL Program
- Federal Work Study (FWS)
- Perkins loans
- Federal Supplemental Educational Opportunity Grants (FSEOG)
Student Loans through the Direct Student Loan Program come directly from the U.S. government, while direct loans through the FFEL Program come from private lenders such as banks.
About Direct Student Loans in particular
The Student Loan Program offers a few types of direct student loans: Stafford loans for students, PLUS direct loans for parents and consolidation loans for either. Borrowing with a Direct Student Loan is simple:
- Students complete one direct student loan application for all FSA programs, including Direct Student Loan.
- The student's prospective school will draft an aid package, which might include a Direct Student Loan. If the student decides to accept the student loan, he or she must sign a direct loan agreement called a master promissory note (MPN).
- Direct Students Loans are not sold. Since borrowing is directly through the federal government, borrowers make loan payments to the Department of Education for the life of their student loans. It's "one-stop-shopping" from direct loan application through repayment.
- There are four repayment plans in the Direct Student Loan Program: standard, extended, graduated, and income contingent. Students can change options when they need to change it, without a fee at any time during the entire life of the student loan.
 Students.net Homepage  Back to Student Loan
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