A Federal Direct Loan is a type of student loan provided by the U.S. Department of Education to help students pay for their education. These loans are available to undergraduate and graduate students, and they come in several forms, including Direct Subsidized Loans and Direct Unsubsidized Loans. The key feature of these loans is that they typically offer lower interest rates compared to private loans and have flexible repayment options.
Students can apply for Federal Direct Loans by completing the Free Application for Federal Student Aid (FAFSA). The amount a student can borrow depends on their year in school and financial need. Repayment usually begins after graduation, and there are options for deferment and income-driven repayment plans to help manage the loan after school.