Though the official name of the federal loan is the William D. Ford Federal Direct Loan Program, You have have loans listed simply titled Direct Loan, Stafford Loan, or Ford Loan. These are all the same loan, just named differently at colleges and universities.
Just so, does a direct Stafford loan have to be repaid?
Do You Pay Back Direct Stafford Loans? Yes, Direct Stafford Loans are loans that need to be paid back. The type of loan you have determines when you need to start paying it. Subsidized Stafford Loans: the government pays the interest while you are in school, during grace periods, and during any deferment periods.
- Complete your registration for summer courses.
- Complete and submit a Summer Financial Aid Application.
- Complete and submit a FAFSA for both the 2020-21 and 2021-22 academic years. If you have not completed either FAFSA, please do so at studentaid.gov.
Beside this, is it too late to fill out fafsa for fall 2021?
To be considered for federal student aid for the 2021–22 award year, you can complete a Free Application for Federal Student Aid (FAFSA®) form between Oct. 1, 2020, and 11:59 p.m. Central time (CT) on June 30, 2022. Any FAFSA corrections or updates must be submitted by 11:59 p.m. CT on Sept.
What are the four types of loans available under the William D Ford Federal Direct Loan Program?
Ford Direct Loan (Direct Loans) Program have? The William D. Ford Federal Direct Loan (Direct Loan) Program consists of the following types of loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidated Loans.
What can I use a Direct Stafford Loan for?
What can student loans be used for?
- Tuition and fees.
- On-campus room and board.
- Off-campus housing and utilities.
- Transportation, including gas, tolls, buses and trains.
- Books, supplies and equipment related to your major.
- Miscellaneous personal supplies, including toiletries and medication.
What is a benefit of a direct Stafford loan?
What are the advantages of a Stafford loan? Stafford loans have a low fixed interest rate, so the size of your payment won’t increase if interest rates rise. They also offer free insurance, so the debt will be canceled if the student dies or becomes disabled.
What is the difference between Stafford loans and direct loans?
What are Direct subsidized loans? Subsidized loans are available to low-income undergraduate students who demonstrate financial need. Currently, there are no subsidized student loans for graduate students. With subsidized Stafford student loans, you’re responsible for paying your principal balance and interest.
What is the Federal Direct Stafford Loan?
Direct Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. … Subsidized Stafford loan – A loan for which the government pays the interest while you are in school, during grace periods, and during any deferment periods.
What is the interest rate for a William D Ford Federal Direct Loan Program?
Terms & Conditions. For the 2021-2022 academic year the Direct Stafford Loan Program has a fixed 3.73% interest rate on undergraduate subsidized and unsubsidized loans. Graduate loans are now all unsubsidized and have a fixed 5.28% interest rate.
What is the main difference between subsidized and unsubsidized Direct Stafford Loans?
Subsidized: Interest is paid by the Education Department while you’re enrolled at least half time in college. Unsubsidized: Interest begins accruing as soon as the loan is disbursed, including while students are enrolled in school.
What is the maximum amount in subsidized William D Ford Direct Stafford Loans a dependent student can borrower as an undergraduate?
Dependent undergraduate students can borrow up to $5,500 in the first year (no more than $3,500 may be subsidized); $6,500 in the second year (no more than $4,500 may be subsidized); $7,500 in the third, fourth, and fifth years (no more than $5,500 may be subsidized), up to a total of $31,000 aggregate balance (no more …
What is the William D Ford Act loan forgiveness?
Ford Direct Loan Program. The College Cost Reduction and Access Act of 2007 (CCRAA; P.L. 110-84) establishes a new loan forgiveness provision for borrowers of loans made under the William D. Ford Direct Loan (DL) program who are employed in public service jobs for 10 years during the repayment of their loans.
What kind of loan is Stafford loan?
When did the direct loan program start?
Student loan programs were among the first to be affected. Prompted by an analysis from the Bush administration indicating that direct loans would be less costly and simpler to administer than guaranteed loans, Congress created a direct lending pilot program in 1992.