What Student Loan Companies Offer Direct Student Loans?
College tuition and expenses have been skyrocketing in the recent few years. And there have never been the worse time for that than this year because economy has been hit hard as well. All the loan companies are wary of lending to demographic population who are still preparing themselves to start working and make money on a daily basis. For college students, government has many financial aid programs to finance their educations – Pell grant, State Grant, and Stafford Loans. Among them, loans are the only ones that you pay back, but sometimes these choices aren’t enough to cover your college education, that’s where direct student loans come into play. They are private loans for college students which is acquired via the help of government. Even though you aren’t directly contacting these private lenders, these type of loans are called direct student loans.
There are so many companies that offer direct student loans and often times these list change. Therefore it is best to reach them through your FAFSA website. Most of these companies are banks such as Well Fargo, credit card companies like Citi Group, credit unions and small financial institutions. Borrowers won’t know the direct student loan lenders until you finish your financial aid and student loan application. It only takes 2 or 3 business days after which you get contacted about how to apply for that loan with the list of companies that are willing to off you the direct student loan based on your eligibility and information data you gave in the application – the Master Promissory Note (MPN). It might sound little bit confusion, but you do have to go through online entrance counseling; this process makes sure you understand your rights and responsibilities pertaining to the direct student loans you are apply for.
A lot of students get confused about when to buy the school textbook, tuition fees and other expenses. Once you get accepted for the student loans, doesn’t matter whether it is direct loans or grant or any kind, the money will be sent to you directly unless you explicitly told them not to. So therefore, even if you buy and pay for the textbook and tuition fee charges, you will get all your student loans. Of course, if you didn’t make the tuition payment before the loan gets disbursed, then the college will take out the fees automatically and the rest of the balance will be coming to your home.
Remember all these information may sound little bit confusing right now, but once you get started with the application and take time to read the instructions it will be very easy. The main reason many students get lost in the loan application approval process is due to their lack of interest in reading the directions. Also the school and the lenders send you notifications as the loan gets disbursed into your account and will notify when it is time for repayment – that is after few months of your graduation date. You can always defer the repayment if you do decide to go back to school or couldn’t find the job right away. If you want, you can contact the Direct loan lenders at 1 (800) 848-0979 or (315) 738-6634; you can either be a college student or a parent.