Term for Identification: Federal Direct Loan Programs

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Term for Identification:  Federal Direct Loan Programs​

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The Answer is The Federal Direct Loan Program, also known as the William D. Ford Federal Direct Loan Program, is a United States federal government program that provides low-interest loans to students and parents to help pay for education beyond high school. It is the largest federal student loan program and includes several types of loans:

1. **Direct Subsidized Loans** - These loans are available to undergraduate students with financial need. The U.S. Department of Education pays the interest on these loans while the student is in school at least half-time, for the first six months after the student leaves school (referred to as a grace period), and during a period of deferment (a postponement of loan payments).

2. **Direct Unsubsidized Loans** - These loans are available to undergraduate, graduate, and professional students, and eligibility is not based on financial need. Interest accrues on these loans from the time they are disbursed, including while the student is in school and during grace and deferment periods.

3. **Direct PLUS Loans** - These loans are available to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required.

4. **Direct Consolidation Loans** - These loans allow students to combine all of their eligible federal student loans into a single loan with a single loan servicer.

The Federal Direct Loan Program is administered by the U.S. Department of Education, and unlike private loans, the terms and conditions are set by law and include benefits such as fixed interest rates, income-driven repayment plans, loan forgiveness for certain types of employment, and deferment and forbearance options.

To apply for a Federal Direct Loan, students and their families must complete the Free Application for Federal Student Aid (FAFSA). The information provided on the FAFSA determines eligibility for all federal student aid, including Direct Loans.

Term for Identification: Federal Direct Loan Programs

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Term for Identification: Federal Direct Loan Programs​

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Term for Identification: Federal Direct Loan Programs

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Answered by ExamLex AI