Generally, a loan is paid in two installments or disbursements. Direct Loan Servicing Center the U.S. Department of Education's agent contracted to collect Direct Loans and handle deferments, forbearances, and repayment options. Federal Direct Consolidation Loans also referred to as a Direct Consolidation Loan, is a loan that allows borrowers to combine different types of federal student loans to simplify repayment. Even if the borrower has only one loan, the loan can be consolidated. Federal Direct Loan Program the William D. Ford Federal Direct Loan Program, also referred to as the Direct Loan Program, is a federal program that provides loans to student and parent borrowers directly through the U.S. Department of Education.
Interest is charged throughout the life of the loan.
Interest is charged during a forbearance period, regardless of the loan type. The grace period starts the day after a borrower ceases to be enrolled at least half-time. During the grace period on a Direct Unsubsidized Loan, accumulating interest must be paid by the borrower or it will be capitalized. There is never a penalty for prepaying principal or interest on Direct Loans. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.