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Department Of Education Student Loans Major Overview

August 27, 2011

Department of Education Student Loans

There are 4 different types of Department of Education student loans, that many are now using to remedy the high prices of schooling. They are known as Direct Loans and are famous for being lended at every low interest rates and a lot of them do not require that you have a cosigner. The best part about these loans is that for the most part, your credit score doesn’t affect your acceptance when it comes to getting the grant money you need. This is just a background, below will be more information on, how to qualify, the different Department of Education student loans programs that are avialable along with the major details that encomapss this information.

Department Of Education Student Loans

Department of Education Studetn Loans – Overview

First off before we get into the different types of Department of Education student loans there are, you will need to first fill out a FAFSA which is a Free Application for Federal Student Aid. This program will take into account any help you are currently recieving like scholarships, grants, help from you parents, if any of these, and whatever the difference is that is left, when it comes to having enough to pay for school will be the amount of money you will be eligible for.

Qualifying for any one of the Department of Education student loans that are avaialable require you to meet certain criteria, those being that you can prove the following:

  • US citizenship or permanent resident
  • Provide a valid Social Security Card
  • Present either a GED or Highschool Diploma, or your two year degree if you are transferring from community college
  • Prove that you the finances are needed
  • Be maintaining what they call a “good standing” academically, legally and financially.
  • Lastly to qualify for Department of Education student loans is that you have to agree to maintain a certain grade point average while you are in your schooling

If you can prove the above, you will be deemed eligible for one of the Department of Education student loans, which the types of loans are discussed in the next section.

Department of Education Student Loans – Differnt Types

There are 4 differnt Department of Education student loans options that you can consider when searching for the right one for you. These loan options are offered through three different grant programs, those being The Stafford Loan which currently has the lowest interest rate, around 4 percent, The Perkins Loan which has a higher interest rate, but is a lot easier to qualify, and The PLUS Loan which is for parents to apply for when helping their child obtain eligibility for loan money. Below are the different categories in which Department of Education student loans are offered.

  1. Direct Subsidized Loan (DSL) which is interest free during the time that you enter college through the the completion of your degree. These Department of Education student loans are given according to financial need, and is given a grace period of what is usually six months after college where you don’t have to pay, leaving you time to find a job.
  2. Direct Unsubsidized loan (DUL) is the next type that is offered by the Department of Education student loans and unlike DSL loans, they are not based on financial need, meaning pretty much anyone can qualify. They also charge interest while you are in college.
  3. Direct Plus Loan (DPL) which explained above is the one where parents take out a loan under there name for their children.
  4. Direct Consolidation Loan (DCL) is the last type of option that the they offer and this is for those who are looking to combine multiple loan programs into one payment.

Department Of Education Student Loans – Conclusion

This is a main overview of the Department of Edcucation student loans program, one that offers billions of dollars per year for students to go to school and attain their degree. They are an excellent organization to go through that is funded by the government so you know they will be legitimate. Hopefully this information on the Department of Education student loans was what you were looking for, and all the best of your application process!