Welcome to Student Loans Guide
No Credit Student Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Direct Student Loans – A Helping Hand
from:Direct student loans, also known as direct loans, are monitored by the William D. Ford Federal Direct Loan Program. These direct student loans are designed to help students that have graduated from high school and are continuing their education in colleges, universities or trade schools. Direct student loans are part of the Federal Student Aid program of the Department of Education and are not offered through private lenders or companies. The loan agreement is between the student and the Department of Education, without any agencies in the middle.
Students that want to apply for direct student loans must complete a FAFSA or Free Application for Federal Student Aid over the internet and submit all required information and documentation. In addition each student will also have to complete a MPN or master promissory note. This is the document that is the legally binding contract between the student and the Department of Education with regards to how the loan will be repaid as well as the specific terms and conditions of direct student loans. There is additional information available through the Department of Education website that details and fully explains all the terms and legal clauses in the master promissory note.
To be eligible for direct student loans the school must be part of the direct loan program and the student must be enrolled at least part-time. Not all students will receive subsidized direct loans, some will be unsubsidized. Typically students with very few resources and with greater financial needs will qualified for subsidized loans, which means that no interest will be charged on the loan while the student is in school or during the grace period or any deferment time.
Students that are dependent, or have parents that are able to help pay for schooling are eligible for lower direct student loans than students that are considered independent. Independent students may be students that have families of their own to support, have no living parents to assist with educational funding or students that are otherwise without financial support. Graduate students can also apply for direct student loans under the same criteria as applying for a Stafford loan, with some of this total possible being subsidized. Typically graduate direct loans have a limit on the total amount of the loan that can be provided interest free during school, grace periods and deferments.
Direct student loans have a fixed interest rate that is set every July 1st. These loan rates have a cap however there is also a loan fee that can be up to 4% of each direct loan. This fee is used to offset the cost of the program for future students.
No Credit Student Loans News
Fitch: Fixed Rate-Private Student Loans Could Spur Growth - MarketWatch (press release)
Fitch: Fixed Rate-Private Student Loans Could Spur Growth MarketWatch (press release) (Sallie Mae) unveiled its fixed-rate loan product, with interest rates ranging from 5.75% to 12.875% based on credit history and underwriting standards and no origination fees. On Monday, Discover Financial Services said it would begin offering private ... |
Senate rejects GOP, Dem plans on student loans - The Seattle Times
 The Associated Press | Senate rejects GOP, Dem plans on student loans The Seattle Times By ALAN FRAM Associated Press No comments have been posted to this article. The Senate rejected dueling Democratic and Republican plans on Thursday for averting a July 1 doubling of interest rates on federal college loans for 7.4 million students, ... Dems the party of 'no,' Coburn backs George Allen, Collins' wedding registry ... |
To Rein-in Student Loan Debt, Rein-in For-Profit Colleges - Huffington Post (blog)
 USA TODAY | To Rein-in Student Loan Debt, Rein-in For-Profit Colleges Huffington Post (blog) There is a new bubble on the economic horizon -- the $1 trillion (and counting) student loan explosion. The aggregate amount of student debt now exceeds total US credit card indebtedness. Many current students are underwater and 45 percent of those who ... Student Loan Bankruptcy: Not A Free Ride Will Student Loans Cause an Economic Armageddon? Five proposals to solve $1 trillion college loan crisis |
Problem Solver: Customer flunks Sallie Mae on student loan - Chicago Tribune
Problem Solver: Customer flunks Sallie Mae on student loan Chicago Tribune "I wanted my credit not to be impaired." On Dec. 9, 2009, Sallie Mae sent McDaniel a letter that said: "Congratulations! You have been released from further obligation as the co-signer for the private student loan(s) starred below. |
Grassley rails against 'immorality' of student loan interest rate - Mason City Globe Gazette
Grassley rails against 'immorality' of student loan interest rate Mason City Globe Gazette Passing $1 trillion, US student loan debt has surpassed credit card and auto loan debt. Average student loan debt tops $25000 nationally, up 25 percent in 10 years. The interest rate increase would cost the 255404 Stafford Loan borrowers in Iowa an ... |