A disbursement of funds by the Government to a non-Federal borrower under a contract that requires repayment of such funds with or without interest. The term includes the purchase of, or participation in, a loan made by a non-Federal lender. The term also includes the sale of a Government asset on credit terms of more than 90 days duration. The term does not include the acquisition of Federally guaranteed non-Federal loans in satisfaction of default or other guarantee claims or the price-support loans of the Commodity Credit Corporation.
Officially named the William D. Ford Federal Direct Loan Program. Under the Direct Loan Program, the funds for the student loan come directly from the federal government. Generally known as Stafford Loans (for students) and PLUS Loans (for parents).
A direct loan is a disbursement of funds by the Government to a non-Federal borrower under a contract that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in, a loan made by another lender. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price support loans of the Commodity Credit Corporation. (Cf. loan guarantee.)
A Direct Loan is a Stafford Loan or PLUS Loan which is serviced through a college instead of through a bank. Banks are not involved in the application or servicing process. Funds from a Direct Loan are placed directly in a student's account at Earlham. It is federal policy that first-time students at Earlham must complete Loan Entrance Counseling to receive their Direct Loan monies.
A student loan issued under the William D. Ford Federal Direct Student Loan (Direct Loan) Program. The program includes Federal Direct Stafford/Ford (Direct Subsidized), Federal Direct Unsubsidized Stafford/Ford (Direct Unsubsidized), Federal Direct PLUS (Direct PLUS), and Federal Direct Consolidation (Direct Consolidation) loans.
Long term, low-interest loans administered by the Department of Education and institutions. Variable interest rate not to exceed 8.25 percent. Direct Unsubsidized Loans can be used to replace EFC. While many aspects of the Direct Loan Program and the Federal Family Educational Loan (FFEL) Program are similar, there is no additional separate application required for Direct Loans.
A federal program where the U.S. government (not a commercial lender) provides four types of education loans to student and parent borrowers directly through schools: Federal Direct Stafford Loan (subsidized, for students), Federal Direct Unsubsidized Stafford Loan (for students), Federal Direct PLUS Loan (for parents), and Federal Direct Consolidation Loan (for students and parents). These loans are referred to collectively as Direct Loans.