Student Direct Loan

Student direct loans are among the first options students and parents research when talk turns to college tuition costs. There is merit, of course, in researching financial aid options. A number of different alternatives exist for students, and among the most popular is the U.S. Department of Education's student direct loan.

This program provides a one-stop-shopping of sorts through the process. A myriad of convenient attributes are offered through this service. Online, a student can make a payment, view his or her account balance, and monitor the payment history. Additionally, the U.S. Department of Education's Direct program offers counseling and other options when a change in billing terms is required for the student direct loan.

There are two main financial aid options that Federal Student Aid (FSA), through The U.S. Department of Education provide, namely, the Stafford and the PLUS. The Stafford is for students to take out by themselves. They are ultimately responsible for all repayment. The PLUS loans, on the other hand, are for the parents to sign for and repay. These two types of aid are also offered through the Federal Family Education Loan Program (FFEL). With the FFEL program the monies are offered through banks and other private lenders. These, then are not referred to as a student direct loan, since the money is not coming directly from the federal government. The Stafford and PLUS programs are called student direct loans because the Department of Education is not only the contact source, but also the actual lender.

There are two main types of online counseling available for individuals who take advantage of student direct loans. First, borrowers must participate in the "entrance counseling" that serves as a preview to the borrowing responsibilities. This session usually lasts 20 to 30 minutes and thoroughly discusses the right and responsibilities associated with taking the financial aid. The entrance counseling provides tips, tools, and budgeting advice to maintaining the student direct loan and other educational expenses. Toward the end of the schooling, the "exit counseling" session is offered. This serves to remind the borrower of his or her rights and responsibilities and potential consequences (good and bad) in repaying the monies borrowed (or not). This farewell and good-luck-with-payment session usually lasts only 30 to 40 minutes. 

There are so many aspects to consider when looking into college, including how to manage the tuition through scholarships, grants, and student direct loans. The large, continuous "college list" can seem daunting, even after a college and major are chosen. Whether one is a non-traditional enrollee and have some idea of the "real world" or a traditional, straight-out-of-high school-graduate, know that God is here to help. He can and will direct his children to the best available options in everything. He is there with the small stuff and the big stuff. Ultimately, He has a plan. "For I know the thoughts that I think toward you, saith the LORD, thoughts of peace, and not of evil, to give you an expected end." (Jeremiah 29:11)