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Student Direct Loan Servicing | Federal Parent Plus Loans Info

Updated on May 3, 2011

What is the Federal Direct Student Loan Program

This article will talk about Student Direct Loans, Parent Plus Loans and Student Direct Loan Servicing.

The Federal Direct Student Loan program is a measure by the U.S. government to provide affordable student loans to deserving and qualified candidates. It is a federal government supported loan scheme.

How to Get a Federal Direct Student Loan

To get a direct loan, a student has to fill out a FAFSA ( Free Application for Federal Student Aid) form as well as a MPN (Master Promissory Note) with their school's financial aid office following which the school will determine the amount of the student loan.

Why is it Called a Direct Loan?

It is called a Student direct loan because there is no middle man involved between the lender and the borrower. This cuts out a lot of the fees and expenses associated with borrowing. Because this is a student loan, it also has very low interest rates as compared to other commercial loans.


Note: Student loan regulations are constantly evoloving with changes in government, political views e.t.c. , you should ask your student loan officer the current terms and regulations for the student loan in question.

If you are looking for student loan consolidation programs, whether public or private, it is in your best interest to seek advice from a professional financial adviser before signing up to consolidate student loans.

Direct Loan Servicing

Direct loan servicing is currently undertaken online at the U.S. Dept of Education website where you will be able to-

  • Make your payments online
  • View your account balance
  • View your payment history
  • Change your billing options
  • Enroll in various electronic services
  • Get loan consolidation information
  • Get tax related information
  • Conduct all your loan related business in an environmentally friendly paperless way

Online Direct Loan Servicing has made it very easy to stay on top of your student loans. You can find more info about Direct Loan Servicing at http://www.dl.ed.gov

Parent Plus Loan

Parent Plus loans are loans for parent's with a good credit history to be able to finance their kid's education. It is a loan that is borrowed by the parent but on behalf of the student to help them with their college tuition. Here are some of the features of the Parent Plus Loan.

  • The student can be an undergraduate or graduate level applicant
  • The student must be enrolled at least half time
  • The parent must be in good credit standing and pass a credit check
  • A parent can borrow up to the total cost of the education including tuition and related school expenses less any student aid.
  • Parents do not have to demonstrate "need" to qualify. Parent Plus Loans are non-need based loans
  • Some school may ask the student to fill out a FAFSA application in order to get a Parent Plus Loan
  • A Parent Plus Loan interest is fixed at 7.9% as of July 1, 2009
  • There are origination fees of 3%
  • Please check your student financial aid office for latest rates, fees and other information regarding the Parent Plus Loan


Student Loans Make a Country Rich

I am a huge believer in student loans. Giving kids who can't afford college a chance to shine make a nation economically and socially strong. A lot of people say that governments are inept and immoral by their very nature.

The student loan program tells a different story. Millions of students have benefited from these student loans and we should encourage our politicians to provide opportunities for all our young people so we can live in a peaceful and prosperous world.

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