What is a federal Direct Loan?
The U.S. Department of Education operates the William D. Ford Direct Loan Program. The student loan program is a form of financial aid. It allows eligible students and their parents to borrow directly from the federal government to help pay for undergraduate, graduate, and professional degree programs.
Students and parents interested in obtaining a Direct Loan must complete the Free Application For Federal Student Aid (FASFA). After submitting the FAFSA, the school will send a letter outlining the available financial aid options, including federal Direct Loans. The student (and parents) can then apply for a Direct Loan to help pay for educational expenses not covered by scholarships, grants, and savings.