Federal Direct Student Loan Program - FDSLP

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DEFINITION of 'Federal Direct Student Loan Program - FDSLP'

A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct Student Loan Program is issued and managed by the U.S. Department of Education and is the only government-backed loan program in the United States. Students who wish to apply for funding from the FDSLP must first submit the Free Application for Federal Student Aid (FAFSA).

INVESTOPEDIA EXPLAINS 'Federal Direct Student Loan Program - FDSLP'

Several types of loans are available under the FDSLP, including subsidized direct loans, unsubsidized direct loans, Direct Plus Loans and Direct Consolidation loans. All loans that are granted through the FDSLP have maximum amounts set each year, with each successive year allowing for an increase in the total maximum yearly amount, with set aggregate amounts.

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    Delinquency occurs when borrowers fail to make payments on their loans. All loan borrowers should do their best to avoid ... Read Full Answer >>
  3. What are the differences between delinquency and default?

    Delinquency and default are loan terms that describe failure to make a required payment. A loan in delinquency occurs the ... Read Full Answer >>
  4. When capitalizing interest, will interest accrue while you are in a deferment?

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  5. Why is more interest paid over the life of a loan when it is capitalized?

    More interest is paid over the life of a loan when that interest is capitalized because the capitalized interest is added ... Read Full Answer >>
  6. What is the difference between compounding interest and simple interest?

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