Borrowers must meet certain requirements to be eligible for discharges. The William D. Ford Federal Direct Loan Program, also referred to as Direct Loan Program, is a federal program that provides loans to student and parent borrowers directly through the U. S. Department of Education. A federally financed and subsidized student loan made on the basis of the student's financial need and other specific eligibility requirements. A federally financed student loan made to students meeting eligibility requirements. Students need not demonstrate financial need.
Interest is charged throughout the life of the loan.
The borrower is charged interest during forbearance. 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 or it will be capitalized. A plan that allows monthly payment amounts to start out at one level and then increase every two years during the repayment period. Borrowers have up to 30 years to repay, depending on the amount they borrowed.