The U.S. Department of Education's agent contracted to collect Direct Loans and handle deferments, forbearances, and repayment options. Even if the borrower has only one loan, the loan can be consolidated. The William D. Ford Federal Direct Loan Program, also referred to as the Direct Loan Program, is a federal program that provides loans to student and parent borrowers directly through the U.S. Department of Education. Also referred to as a Direct Unsubsidized Loan, made to students meeting specific eligibility requirements. Interest is charged throughout the life of the loan.
Interest is charged during a forbearance period, regardless of the loan type.
A six-month period before the first payment must be made on a Direct Subsidized or Direct Unsubsidized Loan. The grace period starts the day after a borrower ceases to be enrolled at least half-time. During the grace period on a Direct Unsubsidized Loan, accumulating interest must be paid by the borrower or it will be capitalized. A loan expense charged by the lender and paid by the borrower for the use of borrowed money. An expense of borrowing deducted proportionately from each loan disbursement.