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These loans are offered by the US Department of Education. They do not involve private lenders and hence, you our taking a loan from the federal government directly. They are available in two options: subsidized and unsubsidized, so that all students can avail this loan as per their requirement necessity and need. In case of subsidized rate plan till your college education is over, he won't be charged the subsidized rate of interest. Meanwhile, for an unsubsidized loan, the interest rate is charged from the time of approval till the complete repayment. But the rate of interest of such loan is quite low as compared to other subsidized loans.

For repayment of loans, you have time, ranging from 10 to 25 years. If you cannot manage to pay the loan amount on time, there are a lot of ways under the loan for deferring the payment, though the he may have to pay some penalties. The repayment duration of a direct loan can also be extended.

A free form of Federal Student Aid, filled up, makes you a candidate automatically. All you have to do is accept the fact that you're ready to take the loan and the loan amount will be deposited into your account immediately.