What is a Direct Student Loan and how does it differ from other loans?
With a Direct Student Loan, the funds are issued directly to you, and the loan isn’t schoolcertified. The amount you’ll borrow is not based on any formula (e.g., cost of attendance minus other aid), which means you can borrow up to $40,000 a year. You will have to reapply each year to receive subsequent funds. You’re responsible for the funds and can use the money to pay for any school-related expense – tuition, fees, room and board, computer, studying abroad, and more. Keep in mind this loan has a higher interest rate than Federal Loans, so only borrow what you absolutely need.
