William D. Ford Direct Loan Programs, What You Need to Know
If you‚Äôre struggling with securing funding for your college education there are a number of options available with federal and private student loan programs. The William D. Ford Direct Loan Program is just one way to take advantage of federal student aid options and is a valuable opportunity for getting a low-interest rate on a student loan. This direct loan program offers a number of repayment plans and is managed by a direct loan servicing center. If you‚Äôre considering applying for the William D. Ford Direct Loan Program, here‚Äôs what you need to know:
The William D. Ford Direct Loan Program is offered by the U.S. Department of Education‚Äôs Direct Loan Programs and is available to all students who have graduated high school. The U.S. Department of Education is the lender of various federal student aid (FSA) programs and the William D. Ford Direct Loan Program is one of several student loans available.
There are four distinct direct loans available through this direct loan program:
- Subsidized Stafford Loans ‚ available for all students who submit a simple FSA application; need is determined by federal criteria and eligibility guidelines
- Unsubsidized Stafford Loans ‚ these types of loans are not based on financial need, and may be more expensive than a subsidized loan
- PLUS Loans ‚ these loans are ideal for graduate and professional students
- Consolidation Loans ‚ these loan programs are a simple way to save money on multiple student loans. These are especially valuable during the repayment period.
The William D. Ford Direct Loan Program requires students to enroll in school on at least a part time basis. All students must meet the Federal Student Aid (FSA) program requirements, and submit the application before the due date. The best way to learn about due dates and eligibility requirements is to contact the financial aid office at the prospective college or university.How Much Can I Borrow with the William D. Ford Direct Loan Program?
After submitting your FSA application, the loan approval committee will review your total school costs, expected family contribution and the amount of financial aid you may already be receiving. In most cases, dependent students can borrow between $3,500 and $5,500 of unsubsidized Stafford loans, while independent students can borrow $7,500 to $10,500 for undergraduate studies. The limits for all subsidized and unsubsidized student loans are $23,000 for a dependent undergraduate student and $46,000 for an independent undergraduate student.Why Choose a Direct Loan Program?
Direct loan programs are very low-interest loans that can help you manage the costs of your education. The U.S. Department of Education is the sole lender of the funds and your loan is managed by an internal direct loan servicing center throughout the term. You can choose from a number of repayment plans to manage your funds after graduation, and can easily switch plans if necessary. Having one direct loan servicing center to turn to for repayment and other loan applications makes it easier to manage your funds and payments.