William D. Ford Direct Loan Program
Who is the man behind the name?
He was a Federal Representative, and he spent thirty years in Washington working to ensure that children have more opportunities to achieve higher learning. William D. Ford served as the chairman for both the House committee on Post Office and Civil Service and the House Committee on Education and Labor.
Representative John Dingell, D-Dearborn said that Ford believed the government was obligated to provide United States citzens with an opportunity to forge their own success and that his every breath was given to forwarding the cause of the working class Americans.
Ford was responsible for the passing of the Family Medical Leave Act, and also wrote the Middle Income Student Assistance Act. The Federal Direct Student Loan Program was named for Ford in 1994. An Explanation of the Program
FDSLP, also known as the William D. Ford Federal Direct Loan Program is a program of the U.S. Department of Education that helps students pay for college by loaning them money; the program is commonly called “Direct Loans.”
Within this program the Department of Education becomes a lender, much like the Federal Family Education Loan Program, or FFELP, and funds Stafford and PLUS loans for the same amounts that these loans are offered through FFELP. The Department of Education actually lets schools decide whether FDSLP or FFELP is the most appropriate program for their students.
William D. Ford Direct Student Loans are a great way for families to pay for post high school education because the are low-interest rate loans. You don’t have to worry abou banks or financial institutions, because the Department of Education serves as the lender. Direct Loans offer three wonderful advantages.
1. They are simple. Even if you have Direct Loans at several schools, you still borrow the money straight from the government and have only one point of contact, the Direct Loan Servicing Center. 2. Conveience. You can manage your account information anywhere and at anytime simply by logging on to the internet.
3. Flexibility. Many repayment plans were created to provide a variety of options and be able to serve almsot anyone, and you can even change plans if your situation changes. What are the Options with Direct Loans?
Students determined by federal standards to have financial need are eligible for subsidized Stafford Loans. You don’t have to pay interest if you’re at least a half-time student, or in the midst of your deferment or grace periods.
PLUS loans were designed for graduate/professional students, or to help parents with education costs for dependent students, and they offer low interest rates.
Loans like the Unsubsidized Stafford Loans are available and not based on finances. You pay interest at all times.
It is possible for students to combine their various federal loan into one because of Consolidation Loans.
You have to meet the general requirements for the FSA, of Federal Student Aid programs, and you must also be attending school at least as a half-time student, in order to qualify for these different kinds of federal student aid loans.
You can read “Funding Education Beyond High School: The Guide to Federal Student Aid,” or you can phone the financial counselor at your school if you need to know more.