Direct LoansMoney for School Directly to You

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Direct Loans - Money for School Directly to You

If you've decided to borrow money to help pay for your education after high school, the U.S. Department of Education offers a simple way to get a loan - through the William D. Ford Federal Direct Loan Program ("Direct Loans" for short). Here are some of this programs' benefits:

You'll borrow money directly from the federal government without having to find a bank (you'll receive your funds through your school). So, you'll get your money much faster.

You'll have only one lender to deal with (the U.S. Department of Education) once you begin repayment. Your loans will never be sold.

You can select the repayment plan that's right for your financial circumstances.

You can change repayment plans if your financial circumstances change.

Because not all schools participate in the Direct Loan Program, check with your school to see if it participates. If it doesn't you may qualify to borrow under the Federal Family Education Loan (FFEL) Program, which includes the Federal Stafford Loan Program. If you've already gotten an FFEL, you may - under certain circumstances - convert it to a Direct Loan through the Federal Direct Consolidation Loan Program. Check with your school to see if it participates for 1996-97. If it doesn't, you may qualify to borrow under the Federal Family Education Loan (FFEL) Program, which includes the Federal Stafford Loan Program. If you've already gotten an FFEL, you may, under certain circumstances, convert it to a Direct Loan through the Federal Direct Consolidation Loan Program.Check out your options at your school's financial aid office.

This booklet will give you the basic information you need about Direct Loans. You'll learn about the types of Direct Loans and the amounts you can borrow. You'll also learn how to apply for a loan, how you'll be paid once you're approved for a loan, and what repayment options you have. You'll learn what to do if you're having trouble making your loan payments and what your rights and responsibilities are as a borrower.

Save this booklet--it can answer future questions.

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Contents Types of Direct Loans

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