The William D. Ford Direct Loan Program (FDLP), more commonly referred to as a Ford Direct Loan, essentially makes low-interest loans directly from available government funds to students. This is in contrast to the FFEL program, in which the government guarantees loans indirectly made by private lenders.
Ford Direct Loan funds are actually sent to a student's institution, which then either disburses them to the student or applies them to their account.
In order to qualify for a Ford Direct Loan a student or their parent must complete the FAFSA form for financial aid.
Repayment of a Ford Direct Loan generally begins six months after graduation, with certain exceptions made for financial hardships and other situations.
Currently, the Ford Direct Loan program includes four student loan programs:
- Subsidized Stafford Loans
- Unsubsidized Stafford Loans
- PLUS Loans
- Consolidation Loans
