Pay Less with Direct Loans

Direct loans are loans that do not involve a third party which means that the money is transferred directly from the lender to the customer. Direct loans appear to be very convenient as the customer has to pay interests and fees only once and only to one lender whereas with other types of loans that involve a third party the customer is to pay both to the lender and to the third party for their services. The third party usually processes the loan from the lender to the customer.

When you are thinking about taking a loan it’s important to find out whether you apply for direct loans or not. Ask your loan company or agent whether the loan you take is coming directly from the bank or lender. Otherwise your fees and interests will increase.

Direct loans are offered by various lenders, i.e. banks, finance companies and other lenders. Direct line loans can help you to consolidate all your direct loans and combine your fees to make payments in a more convenient way.

Direct student loans usually come from the government. There are several federal direct student loans:

  • The Federal Direct Subsidized Stafford Loan is one of direct student loans offered by the federal government. The loan amount is based on the financial situation of the student. With this type of direct student loans you do not have to pay interests while you are at school.
  • The Federal Direct Unsubsidized Stafford Loans is another type of direct student loans but the difference is that with the unsubsidized direct student loan you have to pay interests when you are at school.
  • The Federal Direct PLUS loan is a type of direct student loans that is obtained in the name of the parent to cover educational expenses of the dependent student. These direct student loans are available for the parent of the student who is under 24, graduate or professional, for someone with legal dependents, an orphan or a ward of the court.
  • The Federal Direct Consolidation allows you to combine all your direct student loans into one and make one monthly payment. Consolidation is a good way to lower the interest rate of your direct student loans.
Other types of direct loans are payroll loans direct. Payroll loans direct are also known as cash advance. With direct payroll loans you will have the funds advanced to your paycheck or account.

Getting direct loans is a good way to low your interest rates and fees as you have to pay only to the lender and not to the third party that processes the funds.