Loans come in a variety of forms. Some come in the form of low-interest funds lent by the federal government, others come from private foundations or banks.
Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education, rather than a bank or other financial institution.
Most students who file the Free Application for Federal Student Aid will be awarded a student federal direct loan. A federal direct PLUS loan is also available to parents of dependent students.
A federal direct graduate PLUS loan is available to graduate and professional students to assist with college expenses.
Federal regulations require that all first-time borrowers complete a direct loan entry counseling and a direct loan master promissory note online at www.studentloans.gov before receiving any funds. Current students who have previously borrowed through the Federal Family Education Loan Program will only have to complete a master promissory note.