William D Ford Direct Student Loan Program – The Down and Dirty Truth on the Student Aid Hot Topic

The William D. Ford Federal Direct Student Loan Program, also referred to as Direct Loan Program, is a federal program offered by the US Department of Education that provides loans to student without the help of an intermediary institution.This means that the loan comes directly from the Federal Government, which is why it is called a direct loan program.This federally backed program has helped more than 5 million students pay for college since it was founded in 1994. It gives students and schools an alternative to traditional guaranteed student loans and it adds some healthy competition into the student loan marketplace.What You Get With The William D Ford Direct Student Loan Program These loan programs are some of the most sought after loans because of their flexibility and low interest rates.You are limited to maximum loan for dependent undergraduates of $2,625 for entering freshman, $3,500 for sophomores, and $5,500 for juniors and seniors. So these loans will not take care of all expenses but they will still help considerably.And as far as rates go the direct student loans have a fixed interest rate that is published set every July 1st. It is usually a low rate, but because it changes each year you will have to check to see what the current rate is. And it is also important to note that there is a loan fee that can be up to 4% of each direct loan.But the real exciting part of the loan is its repayment flexibility. Most people do not land in the dream job right out of college so it is good to know that you have some payment options and this program fits the bill.If you are unable to pay off the loan amount in time and you want to defer the payment, then there are number of provision for you to do so.Getting Your Hands On All Of The College Funding Options Available To You