The William D. Ford Federal Direct Loan (Direct Loan) Program is a federal student loan program under which eligible students and parents borrow directly from the U.S. Department of Education at participating schools.
In respect to this, do student loans go away after 7 years?
Student loans don’t go away after 7 years. There is no program for loan forgiveness or loan cancellation after 7 years. However, if it’s been more than 7.5 years since you made a payment on your student loan debt and you default, the debt and the missed payments can be removed from your credit report.
Subsequently, what are the 4 types of student loans?
There are four types of federal student loans available:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
What are the federal student loan programs?
There are three types of federal student loans:
- Direct Subsidized Loans.
- Direct Unsubsidized Loans.
- Direct PLUS Loans, of which there are two types: Grad PLUS Loans for graduate and professional students, as well as loans that can be issued to a student’s parents, also known as Parent PLUS Loans.
Federal Pell Grant: For undergraduates with financial need.
- Grants: Financial aid that generally doesn’t have to be repaid.
- Loans: Borrowed money for college or career school; your loans must be repaid with interest.
At minimum, you must:
- Be a U.S. citizen or an eligible noncitizen (including a U.S. national or permanent resident) and have a valid Social Security number.
- Have a high school diploma or GED certificate.
- Be enrolled or accepted as a student in an eligible degree or certificate program.
Summary: Direct Subsidized Loans (sometimes called Subsidized Stafford Loans) are federal student loans borrowed through the Direct Loans program that offer undergraduate students a low, fixed interest rate and flexible repayment terms.
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.
Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify.
Another type of federal loan is an unsubsidized loan. With an unsubsidized loan, you are responsible for the interest from the moment the loan money is disbursed into your account. There’s no help on the interest; you’re responsible for the whole amount.