Federal Direct Student Loan Program

Federal Direct Student Loan Program

The William D. Ford Federal Direct Loan Program (FDLP), often referred to as "Direct Loans," is a United States Department of Education program that provides loans to help students pay for education after high school. The Department of Education acts as a lender, providing funds for Stafford loans and PLUS loans in the same amounts as the Stafford and PLUS loans offered through the Federal Family Education Loan Program (FFELP).

The Department of Education allows schools to choose which program, FDSLP or FFELP, best suits the needs of its students. The Department of Education does not currently allow a student to choose an FDSLP loan if the school chooses to participate in FFELP, and vice versa. However, students may be able to choose to consolidate loans under either FDSLP or FFELP.

Political history of the program

Congress passed a version of the Direct Loan program under President George H. W. Bush, but Bush promised to veto it. Candidate Bill Clinton promised that he would sign such legislation into law if elected, and the Direct Loan program was one of the first laws he signed in 1993.

Funding for the Federal Direct Student Loan Program has decreased from just over $7 billion in 2006 to $509 million budgeted for 2008. [http://www.gpoaccess.gov/usbudget/fy08/sheets/28_6.xls]

Democrats made more student-favorable Direct Loan terms part of their platform, which contributed to their retaking Congress in 2006.Fact|date=November 2007

In comparison, other countries have also experimented with government-sponsored loan programs. New Zealand, for instance, now offers 0% interest loans to students (retroactive for all former students who had government loans), who can pay their loans back as a percentage of income after they graduate. This program was a Labour Party promise in the 2005 general election.Fact|date=February 2008

External links

* [http://www.ed.gov/offices/OSFAP/DirectLoan/index.html U.S. Dept. of Education: Direct Loans]


Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Federal Direct Student Loan Program - FDSLP — A program that provides low interest loans to postsecondary students and their parents. The William D. Ford Federal Direct Student Loan Program is issued and managed by the U.S. Department of Education and is the only government backed loan… …   Investment dictionary

  • Federal Family Education Loan Program — The Federal Family Education Loan Program (FFELP) is a United States Department of Education program that provides for private organizations to market, originate, and service federally guaranteed loans, such as Stafford and PLUS loans to students …   Wikipedia

  • Federal student loan consolidation — Student loans in the U.S. Regulatory framework Higher Education Act of 1965 U.S. Dept. of Education FAFSA · Cost of attendance Distribution cha …   Wikipedia

  • Student loan — A student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the… …   Wikipedia

  • Stafford Loan — A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education. The terms of the loans are described in Title IV of the Higher Education Act of 1965… …   Wikipedia

  • Student financial aid in the United States — is funding intended to help students pay education expenses including tuition and fees, room and board, books and supplies, etc. for education at a college, university, or private school. General governmental funding for public education is not… …   Wikipedia

  • PLUS Loan — A PLUS Loan is a student loan offered to parents of students enrolled at least half time in eligible programs at participating and eligible post secondary institutions. As of July 1, 2006 PLUS Loans are also available to graduate and professional …   Wikipedia

  • Student financial aid — refers to funding intended to help students pay education expenses including tuition and fees, room and board, books and supplies, etc. for education at a college, university, or private school. General governmental funding for public education… …   Wikipedia

  • National Student Loan Data System — The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s (ED) central database for federal student aid.[1] NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED… …   Wikipedia

  • Indiana University Student Association — The Indiana University Student Association (IUSA) is the student government organization at Indiana University in Bloomington. IUSA consists of three branches, Executive, Legislative, and Judicial.IUSA is a congregation of Indiana University… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”