Direct student loans are low interest rate loans that are provided to the students. Direct student loans are offered by the US Department of Education. The biggest attraction of direct student loan is that it does not involve a private lender like a bank and the student is directly borrowing from the federal government.

For covering all types of students, direct student loans are available in subsidized and unsubsidized options. The federal government subsidizes the interest rate and students are not charged the rate of interest as long as they are taking collage education. On the other hand a subsidized direct student loan is offered to the students on the basis that the interest rate will be charged from the time of the loan approved till it is paid back completely. The loan amount for subsidized direct student loans ranges from £2625 to £8500 and increases each year. On unsubsidized direct student loans the loan amount ranges from £4000 to £10000 and increases each year.

As far as repayment plan of direct student loans is concerned, the students are given sufficient duration. Direct student loans can be return back in 10 to 25 years. If the student is unable to pay off the loan amount in time and wants to defer the payment, then there are number of provision under direct student loans for doing so. On some condition he can surely extend the repayment duration as suits him or her. However the student may have to pay some penalties for not paying the loan back in time.

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