Contact Us

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.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Home
  • Economics, Finance, & Analytics
  • Banking, Lending, and Credit Industry

Federal Direct Loan Program - Definition

Written by Jason Gordon

Updated at December 20th, 2020

Contact Us

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.

Please fill out the contact form below and we will reply as soon as possible.

  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • 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
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Professionalism & Career Development
  • Courses
+ More
Back to:BANKING, LENDING, & CREDIT INDUSTRY

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/

Was this article helpful?

Yes
No

Related Articles

  • Bank Reserve - Definition
  • Mortgage Broker - Definition
  • Deferred Payment - Definition
  • Combined Loan to Value Ratio - Definition

©2011-2021. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand