The Federal Direct Lending Program
Students who apply for financial aid via the FAFSA are reviewed for all types of aid for which they may be eligible. One of the largest federal aid programs is the William D. Ford Federal Direct Lending Program. It is comprised of loans such as the Federal Direct Unsubsidized Stafford and Direct Graduate PLUS loans. The Federal Direct Lending program is funded by the U.S. federal government, supported by the U.S. Treasury.
Domestic students (U.S. citizens and U.S. permanent residents) who are enrolled at least half-time may be eligible to borrow up to $10,250 in Federal Direct Stafford loans per semester. Federal Direct Stafford Loans are fixed-interest education loans which do not require credit approval. The loan terms and repayment options are regulated by the federal government.
William D. Ford Federal Direct Students Loans
Federal Direct Unsubsidized Stafford Loan | Federal Direct Graduate Plus Loan | |
| Interest Rate | 6.8% fixed | 7.9% fixed |
| Origination Fee | 1.051% | 4.204% |
Eligibility | Not need-based. | Loan approval contingent upon a credit check. |
| In-School Interest | In-school interest. Interest begins to accrue at disbursement. The student may defer the principal and the interest may be capitalized. | In-school interest. Interest begins to accrue at disbursement. The student may defer the principal and the interest may be capitalized. |
| Maximum Borrowing Amount | Maximum of $10,250 per semester. | Generous loan limits. Students can borrow up to the full cost of attendance, less the amount of other financial aid received. |
