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Direct Loans uses the federal government as the lender.
Federal student loans offer many benefits compared to other options you may consider when paying for college:
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The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card!
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You don’t need a credit check or a cosigner to get most federal student loans.
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You don’t have to begin repaying your federal student loans until after you leave college or drop below half-time.
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If you demonstrate financial need, the government pays the interest on some loan types while you are in school and during some periods after school.
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Federal student loans offer flexible repayment plans and options to postpone your loan payments if you’re having trouble making payments.
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If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.
https://studentaid.gov/understand-aid/types/loans