The U.S. Department of Education's agent contracted to collect Direct Loans and handle deferments, repayment options, and consolidation. The amount a student's family is expected to contribute toward college costs. 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 specific eligibility requirements.
Interest is charged throughout the life of the loan.
Grace period A six-month period before the first payment must be made on a Direct Subsidized or Unsubsidized Loan. The grace period begins the day after the borrower ceases to be enrolled at least half time. A student who is at least 24 years old, married, a graduate or professional student, a veteran, an orphan, a ward of the court, or someone with legal dependents other than a spouse. Interest An expense of borrowing money that is calculated as a percentage of the amount borrowed. Loan Money borrowed that must be repaid.