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Studying in college nowadays can be challenging. The rising cost of education is making many Americans struggle to manage their finances. The Direct Loan Servicing U.S. government seeks to address this need of many American Direct Loan Servicing households to provide education for their children after high school through a program that offers direct loans to students to pay for their college education.Under the program, the government acts as the sole lender through the U.S. Department of Education.

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The program is called the Direct Loan Direct Loan Servicing Program Direct Loan Servicing and has been in effect since 1993.The program was meant to provide low-interest loans for parents and students and directly offered by the education department Direct Loan Servicing rather than banks and other financial institutions.Since it is offered directly by the government, borrowers would only have a single contact for all transactions related to the payment of their loans -- the Direct Loan Servicing Center -- even if they obtained the loans at different schools.It offers several types of loans and repayment plans in which students and parents can choose from depending on the needs of each borrower.Students may avail themselves of the direct unsubsidized and direct subsidized loans whereas parents and graduate students may apply for the direct PLUS loans. The program also offers direct consolidation loans for borrowers who would like to refinance their multiple loans on low fixed interest rates.Some of the available repayment plans include the standard repayment, which is designed for borrowers who can afford to pay a higher amount each month and want to repay their loans of up to 10 years at a faster rate, while the extended repayment allows for a much longer repayment term of up to 25 years.Regarding rates, unsubsidized and subsidized loans that were first disbursed on or beyond July 1, 2010 generally have a fixed interest rate. Interest for subsidized undergraduate loans on the other hand may have varying rates depending on the date Direct Loan Servicing it was first disbursed.

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The difference between unsubsidized and subsidized loans essentially lies on the financial capacity of the borrower. For subsidized loans, the government provides aid to low-income students by paying the interest of their loans within an allotted grace period, while unsubsidized loans are for borrowers who can afford paying their loans without subsidy from the government.In some cases, the government may opt to discharge or forgive some loans. This is particularly common for employees working in the public service sector. Direct Loan Servicing And, persons who are severely disabled may benefit from the government's loan forgiveness programs.Federal direct loans are being offered by the government to provide students various options in financing their college education. They should explore the different aid packages available to them according to what fits their needs.

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