A direct student loan is similar to most federal student loans, but there are some aspects of them that distinguish it from others. The biggest factor that distinguishes the direct student loan from others is the fact that the federal government is acting as the lender, cutting out the role of the middle man, or the lending company. In other words, you are receiving the direct student loan directly from the government. This makes the process easier for you and for the federal government to get the necessary student loans for school.
A direct student loan is different than both a federal loan and a private student loan in certain ways. While you are given money through the federal government, you are given different terms and conditions than other types of federal loans. Also, getting approved will vary from different student loans as well. In general, a person needing student loans through the government will apply for a direct student loan first, before accepting other types of student loans. A direct student loan is dependent on your income level as well as your credit history. So long as you qualify, you can get up to full tuition paid for.
There are many advantages and differences with a direct student loan that you should consider before thinking about taking out student loans. While there are many advantages, a direct student loan is not intended for everyone. There are different qualifications that you have to go through in addition to the process itself. Because of these, some students might not qualify for the direct student loan, but can still apply for a federal student loan. Sometimes it will happen to be the opposite where a student does not qualify for federal loans, and so considers applying for a direct student loan.