Please note that the total amount you repay will be greater because you pay more interest. One or more federal education loans combined into a single loan under the Direct Loan Program. Only one monthly payment is made to the US Department of Education. 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 US 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.
Interest is charged throughout the life of the loan.
Forbearance An arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period, or to extend the repayment period. The borrower is charged interest during a forbearance. A six-month period begore 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 or it will be capitalized.