federal student loan program

Extracted Attributes

• Full Name

  William D. Ford Federal Direct Loan Program

• Named After

  William D. Ford

• Other Names

  Direct Loan Program, FDLP, FDSLP

• Current Status

  Sole government-backed loan program in the United States

• Primary Purpose

  Provide low-interest loans for students and parents to finance post-secondary education

• Administering Body

  U.S. Department of Education

• Loan Types Offered

  Direct Subsidized Loans, Direct Unsubsidized Loans, PLUS loans, Consolidation Loans

• Application Requirement

  Submission of FAFSA®

• Eligibility Requirement

  Enrolled at least half-time at a participating school

• Outstanding Loan Portfolio

  $1.5 trillion

• Average Student Repayment Time

  19.4 years

Timeline

• The Federal Direct Loan Program became the sole government-backed loan program in the United States, replacing the Federal Family Education Loan (FFEL) program following the passage of the Health Care and Education Reconciliation Act. (Source: Wikipedia, Summary)

  2010

• Collections on defaulted federal student loans resumed. (Source: Web Search)

  2025-05-05

• The program has accumulated a significant outstanding loan portfolio of about $1.5 trillion, with concerns about its effect on the economy and repercussions for students. (Source: Wikipedia, Summary)

  Ongoing

• Identified as a contributing factor to the inflation of higher education costs. (Source: Related Documents, Summary)

  Ongoing

Federal Direct Student Loan Program

The William D. Ford Federal Direct Loan Program (also called FDLP, FDSLP, and Direct Loan Program) provides "low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education ... rather than a bank or other financial institution." It is the largest single source of federal financial aid for students and their parents pursuing post-secondary education and for many it is the first financial obligation they incur, leaving them with debt to be paid over a period of time that can be a decade or more as the average student takes 19.4 years. The program is named after William D. Ford, a former member of the U.S. House of Representatives from Michigan. Following the passage of the Health Care and Education Reconciliation Act of 2010, the Federal Direct Loan Program is the sole government-backed loan program in the United States. The program replaced the earlier Federal Family Education Loan (FFEL) program which issued "guaranteed loans" — loans originated and funded by private lenders but guaranteed by the government. The FFEL program was eliminated because of a perception that it benefited private student loan companies at the expense of taxpayers, but did not help reduce costs for students. The Federal Direct Loan Program has accumulated a very large outstanding loan portfolio of about $1.5 trillion and this number will continue to rise along with the percentage of defaults. A common concern associated with the program is the effect on the economy and repercussions for students that must repay these loans.

Web Search Results

• Federal Student Loans – Eligibility, Interest Rates, & How to Apply

  Information you may need Student Loan Calculator Accrued Interest CalculatorTypes of Student Loans Federal vs Private Student Loans # Understanding Federal Student Loans ## What is a Federal Student Loan? A federal student loan is a type of loan provided by the U.S. government to eligible students or their parents/guardians to help cover the cost of higher education. Since funds are distributed directly from the government, they are a dependable option for financing education. [...] ### Learn more about the three types of federal student loans ## How do I know if I am eligible for federal student loans? To get a Direct Subsidized Loan or a Direct Unsubsidized Loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Typically, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. [...] For federal student loans, all borrowers need to submit the FAFSA®. From there, your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year. To receive a subsidized or unsubsidized loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Direct Subsidized Loans are

• Guide to Federal Student Loan Repayment Programs | Laurel Road

  The office of Federal Student Aid, a division of the U.S. Department of Education, provides more than $112 billion in financial aid (the large majority of student loans) each year. They are likely your first stop in funding your education, and in many cases offer the best options (if you qualify) to take out and repay loans for a wide variety of life, financial, and educational backgrounds. If you’re wondering where federal loans come from, check out this overview from U.S. News & World Report. [...] Online Banking Practical Guide to Financial Independence Online Banking Improving Your Credit Score # Guide to Federal Student Loan Repayment Programs Federal student loan borrowers have a number of repayment options to choose from. This guide will walk you through the different options for standard repayment, refinancing, and federal student loan forgiveness programs. A couple of federal student loan borrowers enjoying after repaying their student loan Overlay Background [...] with a private lender, you will lose access to federal programs, such as federal forbearance, IDR, PSLF, and any other benefits offered to federal borrowers. Learn more at studentaid.gov.

• Student Loan Repayment | Federal Student Aid

  Making Payments --------------- The U.S. Department of Education (ED) uses several loan servicers to handle the billing and other services on loans for the William D. Ford Federal Direct Loan (Direct Loan) Program and for loans that were made under the Federal Family Education Loan (FFEL) Program and that ED later purchased. Your loan servicer will set you up under the Standard Repayment Plan unless you tell your loan servicer you want a different repayment plan. [...] As a federal student loan borrower, you have certain rights that are not typically available with private loans. While refinancing your federal student loans into a private student loan can sometimes lower your interest rate, your private student loan will not necessarily have the same terms and conditions as your federal student loan. [...] For most federal student loan types, after you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period (sometimes nine months for Perkins Loans) before you must begin making payments. This grace period gives you time to get financially settled and to select your repayment plan. Not all federal student loans have a grace period. Note that for most loans, interest accrues during your grace period. The interest that accrues during your grace period will be

• Federal Student Loan Repayment Plans

  | Extended | To qualify for this plan, you must have more than $30,000 in outstanding Direct Loans (if you're a Direct Loan borrower) or more than $30,000 in outstanding FFEL Program loans (if you're a FFEL borrower). These loan types are eligible: Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans All PLUS loans (Direct or FFEL) All Consolidation Loans (Direct or FFEL) | Payments can be fixed or graduated and will ensure that your loans are paid off [...] Seeking forgiveness under Public Service Loan Forgiveness (PSLF)? The PSLF Program forgives the remaining balance on your Direct Loans after you’ve satisfied the equivalent of 120 qualifying monthly payments (10 years) under an IDR plan while working full-time for an eligible employer. Fixed Payment Repayment Plans ----------------------------- [...] | IBR Plan | These loan types are eligible: Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans Direct and FFEL PLUS Loans made to students Direct or FFEL Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents | Either 10% or 15% of your discretionary income (depending on when you received your first loans) but never more than what you would pay under the 10-year Standard Repayment Plan |

• Loan Repayment Basics | Federal Student Aid - Financial Aid Toolkit

  Subject: Successfully Manage Your Federal Student Loans [Insert Greeting], The U.S. Department of Education (ED) has asked us to help make sure you have the information you need to successfully manage your federal student loans. Soon, ED's office of Federal Student Aid will email you important information, online tools, and other resources to help you stay on track repaying your student loans. You also may begin seeing useful information from ED on social media. [...] Collections on defaulted federal student loans resumed on May 5, 2025. This means that if your student loan is in default, the federal government will begin to offset (withhold) money from your federal or state income tax refunds, Social Security payments, and other federal payments to repay your student loans. [...] Remember: Federal loan servicers will help you for free. You never have to pay for assistance with your federal student loans. Visit StudentAid.gov/repay101 for the most up-to-date information about student loan repayment. [Insert your organization's name] is pleased to join ED in giving you the information, resources, and online tools you need to successfully stay on track with your student loans. Sincerely, [Organization Name] top Quick Links -----------