What is the Federal Direct Loan Program (Subsidized and Unsubsidized)?
The Federal Direct Loan program is one of the Federal Student Aid programs of the U.S. Department of Education, which provides students with a simple, convenient and flexible way to borrow money to pay for education after high school. Students do not borrow from banks. The federal government raises the loan funds through its regular Treasury bill auctions. Federal Direct Loans are loans made with federal capital and owned by the federal government. Loan repayments are made to the government and Federal Direct Loans are never sold. Since borrowing is direct through the federal government, borrowers make loan payments to the U.S. Department of Education for the life of their loans.
Related Questions
- What if I have exhausted my annual Federal Direct Subsidized/Unsubsidized Loan eligibility and I still have not reached the cost of attendance? How do I secure additional loans?
- What is the maximum amount that I may borrow under the Federal Stafford Loan program, subsidized and unsubsidized combined?
- What is the Federal Direct Loan Program (Subsidized and Unsubsidized)?
