Are Direct Loans difficult to qualify for?
Direct Loans are funded by the Department of Education to all student borrowers regardless of their income and credit status as long as they are enrolled at least half time and are not in default or owe an overpayment on previous federal loans or grants. There is no credit check required for Direct Loans. Direct PLUS Loans require a credit check in order to qualify. If the borrower does not pass the credit check, he or she can apply with a credit-worthy endorser (co-signer) in order to qualify. Endorser application and additional information will be provided to the borrower by the Department of Education, if a PLUS application is rejected for credit.
