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The Federal Direct Student Loan program is loan given to students in the United States. If you feel that you are in need of the perfect loan, then maybe this is the right one for you since it is a government loan.
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What is the average rate of a federal plus loan?
The average rate of a Federal Direct Parent Plus Loan and Federal Direct Plus Graduate Loan is now 7.9%. This rate is fixed for the life of the loan and cannot exceed 8.25%.
What is the best federal student loan program?
There are many federal student loan programs to choose from. They include Federal Perkins Loan, Federal Direct Subsidized Loan, Federal Student PLUS Loan, etc. When it comes to deciding which is the best, it depends on one's circumstances.
What does a PLUS loan enable one to do?
The Federal Direct Plus loan is one of the low interest loans that enables students and parents to receive funds directly from The U.S. Department of Education to pay for education after high school.
How can one get a federal direct loan?
There is a lot of information about getting a federal loan on the government websites, depending on your location. Most university websites also provide information on getting a federal direct loan, as it is most often aimed at students.
Are all consildated federal loans considered direct loan consolidations?
No. The vast majority are FFELP. If your lender is anyone other then DIRECT LOANS you do not have a Direct Loan.
How can one apply for a Direct PLUS loan?
It is possible to apply for a Direct Plus loan directly online through the official Government's Direct website or also through the Governments official student finance website.
Federal PLUS Loan?
The Federal PLUS Loan is a low interest loan that can be obtained either by parents to pay for the post-secondary education of their dependent children or by graduate students to cover the educational expenses associated with obtaining their own graduate or professional degrees. The Federal PLUS Loan is serviced by the U.S. government through the Department of Education and is part of the government's Direct Loan program. Interest rates for the PLUS loans are fixed at 7.9% for the term of the loan with a 4% fee. The cap for PLUS loan amounts is set at the difference between the cost of attendance and the financial aid, including grants and loans.The Advantages and Disadvantages of a Federal PLUS LoanFederal PLUS loans offer various advantages over loan serviced by private lenders. The most significant advantage is that the Federal PLUS loan is fixed at a relatively low interest rate of 7.9% for the life of the term instead of a variable interest rate for private loans. Federal direct loans will also never be sold to or serviced by any other lender, can be consolidated, and do not require a separate application besides the financial aid application submitted to the student's institution. The disadvantage with a Federal PLUS loan is that it does not allow individuals to privately negotiate an interest rate and take advantage of individual credit-worthiness. In addition, Federal PLUS loans do not offer fee subsidies that some private loans do.The Federal PLUS Loan EligibilityIn order to be eligible for a PLUS Loan, the borrower, who may be the student or the parent, must have no adverse credit history and the borrower and the student must be enrolled at least half-time in school. After credit eligibility has been confirmed, borrowers need to complete a PLUS Loan Application and Master Promissory Note. The Master Promissory Note binds the borrow to repay the loan amount and any accrued interest and fees to the U.S. Department of Education. In order to obtain more information, students and their parents may visit the U.S. Department of Education's PLUS website.
How does one go about obtaining a direct loan?
An individual(student) may obtain a direct loan by filling out an application and sending it to the Federal Student Aid(FSA).
How do you apply for a direct loan consolidation?
One can apply for a direct loan consolidation online. The 'Federal Direct Consolidation Loans' website has the information one needs and allows one to fill out their online application form.
Federal Direct Parent Loan?
Most college undergraduates and their family will need to locate several different loan programs, scholarships or grants in order to fully fund postsecondary education. In addition to the student loans made available by the federal government, parents can apply for a Direct PLUS Loan and make up the difference between the amount of financial aid already awarded and the actual costs of tuition, room/board and student expenses.What Parents Can Expect With A PLUS LoanUnlike a federal grant for education, a Direct PLUS Loan must be repaid. Parents seeking financial aid for their child through the federal government must qualify in several areas. These include a favorable credit history, proof of any financial contributions that can be made for the student's college education and documentation showing legal custody of the student. Graduate students who are living independently may apply for their own federal PLUS Loan, but parents can only obtain funding for dependents.Applying For A Direct PLUS LoanParents will need to fill out and submit a special application provided by the U.S. Dept. of Education. The application also requires the parent to complete and sign a promissory note stating their intention of repaying the loan plus accrued interest. If awarded a loan, disbursement of funds is made directly to the financial aid office at the college or university. Parents can apply for more than one Direct PLUS Loan for other dependents, even if the students are attending different schools. The parent will be able to track disbursements and view the total amount of the repayment by contacting a servicer appointed by the government.Information On Interest Rates And RepaymentA Federal Direct PLUS Loan begins to accrue interest from the moment the first disbursement is completed. The government does not subsidize this loan and therefore all of the interest must be paid in addition to the principal balance. Repayment is deferred so long as the student is enrolled more than half-time, or is taking at least 10 quarter or semester hours of credits. Repayment begins no more than 60 days after the student graduates or leaves the school. The repayment is through the servicer contact. The interest rate on a federal parent Direct PLUS Loan is 7.9 percent. If the loan is taken out through a bank, credit union or other financial institution it may be guaranteed against default by the federal government. Repayment plans vary according to the individual family's situation, but generally the repayment period for this loan is 10 years.
Is income contingent repayment plan is available for direct plus graduate or professional borrowers?
As of July 1, 2009, graduate and professional student Direct PLUS Loan borrowers are eligible to use the ICR plan. Parent Direct PLUS Loan borrowers are not eligible for the ICR repayment plan.
Where can I find direct loan servicing?
There are many online websites that can be used to find direct loan servicing. http://www.direct.ed.gov/ is a federal government based website that can help you find perfect loan services to manage your loans.
