Federal Direct Student Loan Program

The William D. Ford Federal Direct Loan Program provides “low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education … rather than a bank or other financial institution.” It is the largest single source of federal financial aid for students and their parents pursuing post-secondary education. In many cases, Direct Loan Program is the first financial obligation young people incur, with borrowers paying back their debts in an average of 19.4 years. The program is named after William D. Ford, a former member of the U.S. House of Representatives from Michigan.