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Is direct loans real?

Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.

What are the 4 types of federal student loans?

Four types of federal student loans are available: Direct subsidized loans. Direct unsubsidized loans. Direct PLUS loans. Direct consolidation loans.

What type of loan is a direct plus loan?

Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

Do I have to pay back a direct loan?

You have a six-month grace period before you must begin repayment. During the grace period on a subsidized loan, you dont have to pay any principal and you wont be charged interest. In contrast, you will continue to accrue interest on your unsubsidized loan.

Who owns direct loans?

Federal student loans are owned by the U.S. Department of Education while private student loans are owned by the financial institution that granted them.

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