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).

BREAKING DOWN '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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RELATED FAQS
  1. Does interest on my student loan accumulate during forbearance?

    The interest on your account is calculated and capitalized, or added to the principal loan amount, during a forbearance. ... Read Full Answer >>
  2. Can my IRA be used for college tuition?

    You can use your IRA to pay for college tuition even before you reach retirement age. In fact, your retirement savings can ... Read Full Answer >>
  3. What are the long-term effects of delinquent accounts?

    Delinquency occurs when borrowers fail to make payments on their loans. All loan borrowers should do their best to avoid ... Read Full Answer >>
  4. 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 >>
  5. When capitalizing interest, will interest accrue while you are in a deferment?

    When capitalizing interest, interest accrues while a person is in a deferment of his loan. In the event of a deferment, the ... Read Full Answer >>
  6. 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 >>

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