Eligibility Criteria For Federal Direct Loan Program

Federal direct loans refer to a family of federal loan programs offered by the government. Federal direct loans are government-subsidized loans for students and unsubsidized loans for both students and parents. They are generally low-interest, long-term loans that are much easier to pay than regular private loans. Direct Loan is a program in which the government loans money directly to students rather than using a third party bank or other lending institution to process and make the loan.

A subsidized federal direct loan is awarded on the basis of financial need. This kind of loan waives interest before repayment or during legitimate term duration of the loan. The federal government pays for the interest during these periods. An unsubsidized loan, on the other hand, is open to all prospective borrowers regardless of financial status. Interest is charged from the time the loan is disbursed up until the day it is paid in full.

College students can choose from a variety of government and private loans that are easily available for them even through the Internet. Of course, government loans are generally more favorable towards college students availing of the loan as they offer lower interest rates and better packages. Most college students who want the Federal student loan should consider the deadlines set by the government in applying for the loan. The best thing to do is to apply for Federal loans during the first day of January every year. It is also advisable to get information from specific schools as they have different deadlines depending also on the State where they are located.

They should get hold of the necessary forms and fill them up properly. Also gather the necessary documents so you can easily present them when needed. It is better to make a checklist of the forms and documents needed so you are able to see that documents you already have and that ones you do not have.
Federal loan applicants should make sure they know their Social Security Number, identification cards like drivers license, income tax records, bank statements, or if you are not a US citizen, the alien registration number. Never commit the mistake of sending out the original documents as you may need them again in the future.

Make sure that the application form for the federal loan is filled up properly. Check on the Federal loan application website to make sure the forms have been filled out properly and the necessary documents already submitted.

There are requirements that should be met or complied with by students wanting to avail of the Federal student loan but it is not necessary that the student applicant to be a citizen of the country. It is enough that the student holds a valid alien registration card or is considered an eligible alien.

Before complying with the other requirements of the Federal student loan application, make sure the person applying is a high school graduate with a valid diploma or holds a recognized certificate. Also make sure that you do not have outstanding federal student loans that are overdue and have remained unpaid. The primary consideration is the financial need of the student applicant and the family but those who may have a financial need but have been convicted for drugs cannot apply.