Direct Loans
Direct loan is a loan to a customer from lender and no third part involve in lending and borrowing process. Third Part can be a broker or it can be an agent. Direct loans can be secured or unsecured. Direct loan are considered to be the best because lender and borrower deal directly. Direct loan benefits both parties.
In USA direct loan are very famous. U.S. Department of Education which works under the federal Government provides four types of loan.
The Federal Direct Subsidized Stafford/Ford
This is
direct loan to the students, who need this loan very much. They need
this loan to continue study. Federal government not charge any interest
on loan while you are studying.
The Federal Direct Unsubsidized Stafford/Ford Loan
This loan is for those students who don't need much financing. They pay the interest while they were studying. Interest rates are comparatively low.
The Federal Direct PLUS loan
This type of loan is designed for parents who has dependent student. Dependent students must not be 24 or older, not graduated or professional degree holder. Parents must have good credit history .
The Federal Direct Consolidation loan
In this direct loan, student pays a single monthly payment to the U.S. Department of Education. Students get the advantage of the low interest rates.
All these four direct loans has some requirement which student should fulfill to get approved for this loan.