Banks are not the only institutions that provide student loans. In fact, the government also provides loans that they refer to as Direct Student Loan. It is called as such because the government directly gives money to the students or parents who avail of this loan. This loan helps the citizens to finance their education and pursue their dreams. The amount the student receives under Direct Student Loan depends on his/her academic stature, history, and the financial situation the person has -- whether he/she is independent or dependent. These factors would determine the type of loan that the student may avail and the amount of loan that they borrow.

One of the examples of Direct Student Loan is Federal student loan which comes in two kinds: subsidized federal student loan and unsubsidized student loan. In subsidized loans, the student will pay the interest after graduation. This is the same time he/she is paying the loan itself. During the time that the student is still in school, the government will pay for those interests. On the other hand, in unsubsidized, the student will already pay the interests in school while still attending school and not after graduation.

In line with student loans, the difference thing about Direct Student Loan is that they provide a period of six months before the student will start paying the actual loan. This means to say that the government allows them to find a job first. This also means that the government allows for the students to establish themselves before actually asking them to pay the monthly payments. In cases when parents avail of Direct Student Loan, then the six months period won't be given. In an effort to find a way through financing education, people succumb to student loans. But in the end, it's all worth it.