Do you really want to pursue college, but you're running out of cash? Would you just let that dream die? Good news is the government, through the Education Department are offering programs to help one get through college. Student financial aid direct loans are an inexpensive and simple way of lending money to help them pay for college expenses like books, tuition fee, dorm fee and any other educational expenses. If you are planning to get a student loan from this program, try to check if your school recognizes it. Furthermore, if the school participates with this program, complete a form called a master promissory note. It would serve as a legal binding agreement between you and the Department.
You may choose from four repayment plans. Choose the plan that you consider would best suit you. They are standard, extended, graduated and income contingent payment scheme. Under the standard plan, the borrower will pay a fixed amount monthly until the loan is fully paid. This would be a good option if you can manage to have a higher monthly payment because it would allow you to repay the loan quicker. The extended plan the best plan for you if you plan to finish the loan in a shorter time. You are allowed to pay for the loan for twenty five years with a lesser monthly payment than the standard plan. However, the longer you intend to pay for the loan the more the interest you will pay. There are two options under this plan: the fixed and the graduated. Under the fixed term, you will pay the same amount monthly as for the graduated payment you start with low pay but will increase every two years. The income contingent repayment is a very flexible plan that helps you get through your undue financial burden. Your monthly payment is calculated based on the borrower's adjusted gross income which will include the spouse's if married, the size of the family and the total amount of the loan. The maximum repayment period for this plan is twenty five years. The last option you have is the graduated repayment plan. In here, you will start with a very low monthly payment but would increase every two years. You are given up to ten years to repay your loan under this type.
Student financial aid direct loans are offered to make your dream get through college come true. You can check on how to avail of this loan through the servicing sites. Even so, you need to go through an entrance and exit counseling before you can apply for the loan, or before it gets approved. The entrance counseling is a session that would provide you some advice that would help you manage your budget and college expenses. It is also designed to assist you understand your responsibilities a as borrower. On the other hand, the exit counseling is required to borrowers prior to graduation or leaving the college. This would make you responsibilities as a direct loan borrower. Consequently, going to college need not a burden as long as you become a responsible borrower.
Peter Barlow is a finance specialist and has written many loan related articles to help people get the loan they need at the rates they want.
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