William D. Ford Federal Direct Loan Program
Plain English Summary
Establishes the federal student loan program including loan types, interest rates, repayment plans, and forgiveness options.
Full Text
The Direct Loan Program provides low-interest loans to eligible students and parents to help pay for postsecondary education. Loan types include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Borrowers must complete entrance counseling and sign a Master Promissory Note.
Repayment options include Standard, Graduated, Extended, and Income-Driven Repayment plans. Borrowers may qualify for Public Service Loan Forgiveness after 120 qualifying payments while employed full-time by a qualifying public service employer. Deferment and forbearance are available in certain circumstances.