Federal Direct Loan Program - Definition
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Accounting, Taxation, and Reporting
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Marketing, Advertising, Sales & PR
- Business Management & Operations
- Economics, Finance, & Analytics
- Professionalism & Career Development
Federal Direct Loan Program Definition
The Federal Direct Loan Program is a loan structure created and funded by the Department of Education in the United States. This program offers low-interest loans to students and parents to enable them to sponsor the postsecondary education of their wards. The Federal Direct Loan Program is the only loan backed by the U.S government, it is otherwise called the William D. Ford Federal Direct Loan Program. The Federal Direct Loan Program differs from loans offered by banks and other financial institutions, given that this loan is backed by the U.S government, they have low-interest rates.
A Little More on What is the Federal Direct Loan Program
The Federal Direct Loans are the only federal loans available to students in the United States, these government-sponsored loans enable students to fund their postsecondary education. This direct loan program offers varieties of loans such as direct consolidation loans, direct PLUS loans, subsidized direct loans, and unsubsidized direct loans. Aside from federal loans, there are private lenders that offer student loans to fund their education after high school, loans offered by private lenders often have higher interest rates than the federal direct loans. There is a maximum of loans that students can take from the Federal Direct Loan Program every year, eligible students are also required to submit an application before they can be granted the loan.
References for Federal Direct Loan Program
https://en.wikipedia.org/wiki/Federal_Direct_Student_Loan_Programhttps://www.investopedia.com Personal Finance Budgeting & Savingshttps://www2.ed.gov/offices/OSFAP/DirectLoan/index.htmlwww.businessdictionary.com/.../Federal-Direct-Student-Loan-Program-FDSLP.htmlhttps://www.gse.harvard.edu/financial-aid/federal-direct-loan-programhttps://www.consumerfinance.gov/ask-cfpb/what-is-a-federal-direct-loan-en-1553/