Federal Direct Loan Program

The Federal Direct Loan Program (FDLP) is a United States government program that provides low-interest loans to undergraduate and graduate students enrolled at participating colleges and universities. The program is administered by the U.S. Department of Education (ED).

The FDLP is the largest source of federal student loans in the United States. In the 2020-21 academic year, the program provided over $120 billion in loans to over 12 million students.

There are two types of loans available through the FDLP: subsidized and unsubsidized. Subsidized loans are available to students who demonstrate financial need, and the government pays the interest on the loan while the student is in school and during a six-month grace period after graduation. Unsubsidized loans are available to all students, regardless of financial need, and the student is responsible for paying the interest on the loan from the time the loan is disbursed.

The interest rate on FDLP loans is set by the U.S. Department of Education. For the 2022-23 academic year, the interest rate on subsidized loans is 3.73%, and the interest rate on unsubsidized loans is 4.99%.

FDLP loans are repayable over a period of 10 years. The monthly payment amount depends on the size of the loan, the interest rate, and the repayment term.

Students who have trouble repaying their FDLP loans may be eligible for loan forgiveness or repayment assistance programs. For more information, visit the ED website.

The FDLP is a valuable resource for students who need financial assistance to pay for college. The program offers low-interest loans that can help students cover the cost of tuition, fees, books, and living expenses.