Federal Direct Loans

Federal Student Aid, an Office of the U.S. Department of Education, defines "A loan is money that is borrowed from the federal government or a private source like a bank or financial institution, and must be paid back with interest." (studentaid.gov)

What is a Federal Student Loan?

A Federal Direct Student Loan is a type of financial aid that incurs debt that must be paid back with interest. Shasta College offers William D. Ford Federal Direct Loans through the Department of Education.

Direct loans are low-interest education loans for students to meet any unmet costs associated with attending college. There is no credit check or cosigner required to qualify. The U.S. Department of Education is the loan lender, and each loan is assigned to a contracted loan servicer that handles all aspects of the loan after the school awards and disburses the loan to a student.

You can find your loan servicer and their contact information by visiting Who’s My Student Loan Servicer? | Federal Student Aid website after your first loan disbursement has been made. Your loan servicer will be responsible for any questions you have about your loan after the funds have been disbursed, and it is important to keep your contact information current with them.

Repaying your Student Loans is Necessary

Federal student loans are long-term debt obligations. Accepting a loan means accepting the responsibility for repaying the money you borrow, including interest costs and fees. Before you request a loan, make sure you understand the true cost of repaying the loan, interest rates, and how many years you will spend making a monthly payment. To get answers to these questions, you should visit Loans | Federal Student Aid​ website.

Be a Smart Borrower

You can also find more information regarding interest rates, repayment plans, deferments, forbearance, consequences of default and much more at Manage Loans | Federal Student Aid website. You can also visit Shasta College’s online financial wellness platform powered by iGRAD to increase your personal financial knowledge in order to plan your financial future, with courses on topics like student borrowing, budgeting monthly expenses, using financial aid wisely, and many more. iGRAD is also where you will complete the required Loan Entrance and Exit Counseling to borrow at Shasta College.