(MONEY Magazine) – Starting July 1, students at 104 colleges and trade schools, including Harvard, Rutgers and Memphis State, will apply for federal loans directly through their school's financial aid office rather than at banks. Current interest rate: 6.2% to 6.6%. The Federal Direct Student Loan Program, to be expanded to more than 1,000 schools next year, should let borrowers get aid faster and require fewer forms than in the past.