7 Direct Student Loan Benefits

A direct student loan is money borrowed from the Department of Education by a student to fund college/university schooling. Although, when it comes to taking out loans, borrowers have many options, for students, the benefits of a direct student loan make it the best choice.


The variety of direct student loans available allows students to borrow based on their particular situations. Whether a borrower is in financial need or not, is an undergraduate, graduate, or professional student, or is the parent of a student, there is a specific option to look into.

Repayment is only due after a student reduces his or her attendance in school to less than half time. Once repayment is due, the student can choose to renegotiate his or her repayment plan at any time without any penalty.


Direct student loans are lent from the Department of Education, go to a student/parent of a student, and are controlled by a school's financial aid office.  There are no other parties involved in the arrangement. This allows for simplicity in dealing with all matters, including problems, involved in the process of using a direct student loan.

The student, or the parent of the student, does not need to worry about the security of his or her lender. The lender of direct student loans is always the government. Other loans, such as those obtained from internet lending companies, may come from questionable sources with uncertain longevity and security. The student may find himself/herself in trouble when it comes time to repay this type of loan. Because the federal government supplies direct student loan, they are accepted at most recognized universities/colleges.

Student Friendly

Interest rates are very low on direct student loans. For some types of direct student loans, the government takes on the burden of paying the interest while the student is in school.

Applying for a direct student loan is simple. The entire application can be done online. The Free Application for Federal Student Aid is supplied by the United States Department of Education, can be downloaded or printed, and only one copy has to be filled out for every school that a student applies to.  The form requires basic financial and demographic information and does not demand history beyond one year. The exception is a PLUS direct loan, in which case a parent or graduate or professional student must provide a credit history.

The eligibility requirements are basic. A student must be a United States citizen, be working towards a legitimate degree, and must meet other uncomplicated qualifications. Everything is perfectly spelled out on the Department of Education's website. 

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