William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program (DL) provides Federal Stafford Loans to help cover the costs of educational expenses.  Federal Stafford Loans have a fixed interest rate of 6.8% and repayment of principal is not required until six months after you cease enrollment on at least a half-time basis.  You may qualify to borrow up to a maximum of $20,500 each year.  You must file the Free Application for Federal Student Aid (FAFSA)  to be considered for these loans.  The loans you receive will be either subsidized or unsubsidized.

A subsidized loan is awarded on the basis of financial need.  You won't be charged any interest before you begin repayment or during deferment periods.  The federal government pays the interest during these periods.  You may qualify to borrow up to a maximum of $8,500 of subsidized loan each year.

An unsubsidized loan is not awarded on the basis of financial need although you must still file the FAFSA to be considered for unsubsidized loans.  You'll be charged interest from the time the loan is disbursed until it's paid in full.  If you allow the interest to accrue while you're in school or during other periods of nonpayment, it will be capitalized.  This means the interest will be added to the principal amount of your loan, and additional interest will be based on the higher amount.

The following links provide detailed information concerning all aspects of the William D. Ford Federal Direct Loan Program: