Federal Direct Student Loan Program

<table><tbody><tr><td><a href="/facts/Student_loans_in_the_United_States/mFG4LyCU">Student loans in the U.S.</a></td></tr><tr><th>Regulatory framework</th></tr><tr><td><a href="/facts/National_Defense_Education_Act/wcVsNpNg">National Defense Education Act</a>  <a href="/facts/Higher_Education_Act_of_1965/TQ3Tp48v">Higher Education Act of 1965</a>  <a href="/facts/Higher_Education_Relief_Opportunities_For_Students_Act/z6am4Uok">HEROES Act</a>  <a href="/facts/United_States_Department_of_Education/VuahmIvb">U.S. Dept. of Education</a> · <a href="/facts/FAFSA/sfuThPyw">FAFSA</a>  <a href="/facts/Cost_of_attendance/YMNNuTc1">Cost of attendance</a> · <a href="/facts/Expected_Family_Contribution/NSPgYMTY">Expected Family Contribution</a></td></tr><tr><th>Distribution channels</th></tr><tr><td>Federal Direct Student Loan Program  <a href="/facts/Federal_Family_Education_Loan_Program/6TT3WUrR">Federal Family Education Loan Program</a></td></tr><tr><th>Loan products</th></tr><tr><td><a href="/facts/Federal_Perkins_Loan/j7r825qE">Perkins</a> · <a href="/facts/Stafford_Loan/eBpo0oVJ">Stafford</a>  <a href="/facts/PLUS_Loan/Ez07eAmW">PLUS</a> · <a href="/facts/Federal_student_loan_consolidation/qEIczjmd">Consolidation Loans</a>  <a href="/facts/Private_student_loan_(United_States)/2SV9ovqM">Private student loans</a></td></tr></tbody></table>

<p>The William D. Ford Federal Direct Loan Program (also called FDLP, FDSLP, and Direct Loan Program) provides "low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the <a href="/facts/United_States_Department_of_Education/VuahmIvb">U.S. Department of Education</a> ... rather than a bank or other financial institution." It is the largest single source of federal financial aid for students and their parents pursuing post-secondary education and for many it is the first financial obligation they incur, leaving them with debt to be paid over a period of time that can be a decade or more as the average student takes 19.4 years. The program is named after <a href="/facts/William_D._Ford/UlEjfkK1">William D. Ford</a>, a former member of the <a href="/facts/U.S._House_Of_Representatives/cdBPb9pY">U.S. House of Representatives</a> from <a href="/facts/Michigan/bCurmfT2">Michigan</a>.
</p><p>Following the passage of the <a href="/facts/Health_Care_and_Education_Reconciliation_Act_of_2010/JYRUD2jD">Health Care and Education Reconciliation Act of 2010</a>, the Federal Direct Loan Program is the sole <a href="/facts/Government-backed_loan/JFsWEGke">government-backed loan</a> program in the United States. The program replaced the earlier <a href="/facts/Federal_Family_Education_Loan_Program/6TT3WUrR">Federal Family Education Loan</a> (FFEL) program which issued "guaranteed loans" — loans originated and funded by private lenders but guaranteed by the government. The FFEL program was eliminated because of a perception that it benefited private student loan companies at the expense of taxpayers, but did not help reduce costs for students. 
</p><p>The Federal Direct Loan Program has accumulated a very large outstanding loan portfolio of about $1.5 trillion and this number will continue to rise along with the percentage of defaults. A common concern associated with the program is the effect on the economy and repercussions for students that must repay these loans.
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Federal Direct Student Loan Program open-in-new

Federal Direct Student Loan Program