Federal Direct Student Loans
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Federal Direct Student Loans
The Federal Direct Loan Program (FDLP) is a U.S. Department of Education program that provides students with loans to help pay for college. With a direct student loan, the Department of Education acts as the lender for Stafford and PLUS loans.
The Federal Family Education Loan Program (FFELP) is offered through private lenders and institutions, but is federally guaranteed.
Schools will participate in either the FDLP or FFELP, however, according to the Department of Education, they may not participate in both. The school may choose which program is best suited to help its students.
The FDLP was one of the first pieces of legislation signed by President Bill Clinton when he took office in 1993. Funding for this program was just over $7 billion in 2006, though it has dropped dramatically to $509 million for 2008.
In order to qualify for a direct student loan you must be registered at least half-time in school, complete the Free Application for Federal Student Aid (FAFSA) and fill out a Master Promissory Note. The MPN explains the terms and conditions of the government student loan.
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