The process is simple for borrowers. Direct Loans borrowers complete one application, the Free Application for Federal Student Aid (FAFSA), for all Department student financial aid programs, including Direct Loans. They do not submit a separate loan application to a bank.

• Students do not borrow from banks. The federal government raises the loan funds through its regular Treasury bill auctions. Direct Loans are loans made with federal capital and owned by the federal government. Loan repayments are made to the government.
• Direct Loans are never sold. Since borrowing is direct through the federal government, borrowers make loan payments to the Department of Education for the life of their loans. It's "one-stop-shopping" from loan application to repayment.
• Borrowers have flexible repayment options. There are four repayment plans in the Direct Loan Program: Standard, Extended, Graduated, and Income Contingent. Students can change options when they need to without a fee at any time during the life of the loan.

Schools may receive free software training and technical assistance. Direct Loan schools are not charged for their electronic transactions. Toll-free numbers ensure that students and schools receive the help they need. In addition, schools can contact the Direct Loan School Relations Office staff in each of its ten regional offices to get training and technical support on Direct Loan issues.