As a student you can choose to fund your college education through many methods. If you can afford it you can get a loan from private lenders.

But most students prefer to get their financial aid for their tuition assistance from the Federal government. The loans that are guaranteed by the US government are called direct Federal student loan and they have become very popular with students because they have many advantages over private student loans.

The loan can be disbursed as a subsidized or unsubsidized. It is easy to apply for a direct Federal student loan as credit check will not be done and the application is free with no other expenses to be paid.

This loan is given on the basis of the financial needs of a student. For those students that show they have a financial need they are usually awarded the subsidized loan. With a subsidized loan the government pays for the interest and all the student will be required is to pay for the principal amount borrowed.

The unsubsidized loan is just like any other loan in the sense that all interests and principal amounts must be paid after the loan is awarded.

To be eligible for this direct Federal student loan you need to be enrolled in college either on a full time or part time basis.

The rates of interest charged on these loans are much lower than what is being charged in the money market and you can lock in the interest rate thereby enjoying a fixed rate of interest.

These loans have a 6 months grace period before repayment starts and and you can also defer payment for 3 years if need be.

With a repayment period of 10 to 30 years the direct Federal student loan is an option worth looking into if you are thinking of financing your college education .

Benefits of direct federal student loan consolidation

Direct Federal student loan is funded by the Federal government to help many students finance their college education.

Direct Federal Student Loan Consolidation

Most students have taken advantage of direct Federal student loan consolidation program which is funded by the Federal government to finance their college tuition, room and boarding expenses , books and other expenses required by a student in a university.

This loan can be applied for by a student through the mainstream banks or lenders and it is guaranteed by the federal government.

What Are Government Assisted Consolidation Loans?

Government assisted consolidation loans are available only to help borrowers combine their Federal education loans.

These loans which are called Direct Loan Program are financed by the U.S. Department of Education.

The loans combine all the student loans into one debt with one monthly repayment making it easier to handle.

Government assisted consolidation loans offer several benefits: