There are many advantages for applying for a direct student loan. One of the biggest advantages is that the loan is interest free at least while you are still in school. This means that as interest rates fluctuate, your student loans will not be affected until you graduate and have to begin paying back your loans. If you have a federal direct student loan, you are also given a grace period from when the time that an interest rate is calculated until you have to begin paying back your loans. this grace period allows you to search for consolidation options and other repayment terms before you begin paying them back.
With a direct student loan, you also have the option to get them consolidated. There are many options as far as how to go about paying back any direct or federal direct student loan. A direct student loan has low interest rates and generally do not require a credit check. Larger loans, however, will require a credit check before the money is dispersed. Another advantage of a federal direct student loan is that they are dispersed directly from the federal government so that there is no middle man loan company that will cause an increase in the interest rates and other costs in the loans.