Borrowers must meet certain requirements to be eligible for discharges. The U.S. Department of Education's agent contracted to collect Direct Loans and Servicing Center handle deferments, repayment options, and consolidation. 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.
The borrower is charged interest during a 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. An expense of borrowing deducted proportionately from each loan disbursement. The total sum of money borrowed.