The Federal Direct Loan Program

The Federal Direct Loan Program is a government-backed system that provides students and their families with loans to help pay for higher education. The loans are funded directly from the U.S. Department of Education, offering options such as Direct Subsidized Loans (for eligible students with financial need) and Direct Unsubsidized Loans (regardless of financial need). These loans typically have lower interest rates and flexible repayment options compared to private loans. Borrowers must meet certain criteria, and repayment begins after graduation or when attendance drops below half-time. The program aims to make college more accessible by offering affordable financing options.