It is possible to find direct student loan online because many schools do participate in Direct Loan programs which in turn provide students with funds straight from the Federal Government instead of from private lending agencies. The simplest means of getting direct student loan online is by filling out a FAFSA. Once this is done the school will evaluate your request and then inform you about whether or not you are eligible for such a loan.
Direct Student Loan Online: Sign The Loan Note
In case your request for direct student loan online is approved you will be asked to sign a document known as loan note that contains the precise terms and conditions regarding repayment of your loan. How much money you are given in the form of direct loan depends on which year in school you are attending and whether you need a subsidized or unsubsidized loan. For subsidized direct student loan online you will be given the loan according to your exact financial needs and if you are then approved for such a loan, the government will pay interest during the years you spend in studying in school as too for the first six months following graduation.
Even if you are not able to demonstrate dire financial necessity you can still apply for direct student loan online and get a loan. However, such a loan will be unsubsidized which in turn means that you will be responsible for paying both the loan amount as well as the accrued interest on it. In fact, you also have the option of paying interest on a regular basis or you can let it accumulate and become capitalized. However, in case you choose to allow the loan to capitalize you will end up having to pay more in the end.
In any case, the main benefit to applying for direct student loan online is that such loans attract very low rates of interest and some are even interest-free and so, it is something that allows young students to finish their studies in a simple as well as inexpensive manner. If for some reason you apply and get approved for direct student loan online, and then find that you cannot repay the loan; it is then time to consider direct student loan forgiveness.
One last point that needs to be made in regard of applying for direct student loan online and that is that you must proceed with great caution because there are many scams doing the rounds and if you are not careful you can easily become a victim of a direct student loan online scam.