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Dept Of Education Student Loans – Loans Offered

September 2, 2011

Dept Of Education Student Loans

The Dept of Education student loans are offered to students as a way to make the insanely pricey option of college a lot more affordable. The Department Of Education has three different categories that one can choose from when it comes to student loans which are: Direct Loans, Stafford Loans as well as PLUS Loans which consist of both loans that parents can take out their children as well as their Graduate PLUS loans that are at the graduate and professional level. Dept Of Education student loans can be applied by anyone at no cost through the FAFSA application form which stands for Free Aplication for Federal Student Aid.

Dept Of Education Student Loans


Dept Of Education Student Loans – Loans Overview


  1. Subsidized – These Dept of Education student loans are rewarded to the most financially needy. To qualify for this option you must prove different specifications such as low income or unemployed etc. This one is interest free while in school as well as during its 6 month grace period. Interest rates are often as low as 3 percent which is a fixed interest rate meaning that it will never change.
  2. Unsubsidized – These loans are the opposite of subsidized as they are offered to anyone regardless of their financial need. This one is much easier to qualify for but makes one pay interest while in school, but not during the 6 month repayment period. Interest payments are usually a bit higher with unsubsidized Dept of Education student loans but are fixed like subsidized.
  3. Direct PLUS Loans - Like it was said before, these Dept of Education student loans are for parents who are taking out loans for their dependable child, as well as for those who are going into grad school or professional students as the borrowing limits are much higher. These loans both have low fixed interest rates and provide benefits like deferrment options, you don’t have to have a cosigner to qualify and you monthly payments are considered tax deductable.
  4. Direct Consolidation – This last option allows you to combine all of your federal student loans into one lump payment instead of paying on multiple different payments each month. By doing this you can get a lower montly payment as well as lower interest payments.


  1. Stafford loans are offered to both undergraduate and graduate students and is the most used loan program around for federal loans. These as well come with low interest payments and can be used for anything related to school like tuition, books, transportation and more. These Dept Of Education student loans offer a fixed interest rate as low as 3.4 percent, and up to 20,5000 dollars per year in borrowing funds depending on where you are at in you schooling.

Dept Of Education Student Loans – What Should You Do Now?

This is what there is to offer as far as the Dept Of Education student loans go, but it is highly suggested that you exaust your free financial aid resources first, like scholarships and grants which can be inquired about through the college you are going to attend as well as on the internet. After you have exausted your resources when it comes to free financial aid, then it is suggested that you start looking into the Dept of Education student loans and private loans.