Post school education is very costly nowadays. If you are not having sufficient financial back up behind you, you will feel it extremely difficult to pursue your studies. Being a student you can not even have a full time job and thus you face a troublesome situation. Direct student loans come to the rescue of such needy students who have finished school and entering college education which demands host of expenditures.
Understanding these loans
Direct student loans are low interest rate loans that are provided to the students. These loans are offered by the UK Department of Education. The biggest attraction of such loans is that it does not involve a private lender like a bank and the student is directly borrowing from the government agencies.
These loans are available in two forms- subsidized and unsubsidized form. If you go for the former, you have to pay no interest till you finish your education while you have to pay the interest from the day of approval in the later case.
The amount and interest rates
The loan amount for subsidized direct student loans ranges from £2625 to £8500 while for the unsubsidized direct student loans the loan amount ranges from £4000 to £10000 and increases each year. You have to pay the loan amount in 10 to 25 years. The interest rates are around 7% to 10% APR.
Ways to get
These loans are offered directly by the government. You have to apply online giving the details of your financial requirement and economic condition. Now you have to perform some dummy documentation and the officials check the authentication of the particulars provided by you. In a short time, the loan amount is approved and you are free to use the funds to back up your student life.
The repayment options involved with the direct student loans are also very flexible and easy. If you fail to make a regular repayment of installments you just have to inform the officials about it and you can pay the installments later, after paying some penalty.
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