Federal Direct Loan Program (FDLP)

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(800) 845-6267
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Under the Federal Direct Loan Program (also known as "Direct Lending" or FDLP), the federal government — rather than a bank or other financial institution — makes a loan to help a student or parent pay the costs of the student's education beyond high school.

The FDLP offers three types of loans: Federal Direct Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans, which, compared to private loans, have several advantages, including:

Interest rates are low
Application and approval processes are uncomplicated
Loans are available to both students and parents
Federal Direct Stafford Loans are not contingent upon a credit check
A student is not required to make payments on a Federal Direct Stafford or Student Federal Direct PLUS Loan while enrolled in school on at least a half-time basis; in addition:
- A Federal Direct Stafford Loan borrower is not required to make payments for the six-month period after he or she drops below half-time enrollment
- For a Student Federal Direct PLUS Loan first disbursed on or after July 1, 2008, the Student PLUS Loan borrower can defer payments for the six-month period after he or she drops below half-time enrollment
A parent can defer payments on a Federal Direct PLUS Loan while enrolled in school on at least a half-time basis; in addition, for a Federal Direct PLUS Loan first disbursed on or after July 1, 2008, a parent, upon his or her request, can defer payments on a Federal Direct PLUS Loan:
- For the six-month period after the parent drops below half-time enrollment
- While the student for whom the parent borrowed is enrolled at least half time and for the six-month period after the student drops below half-time enrollment

How it works

Under the FDLP, the Department of Education makes a loan to a student or parent through the student's school. The federal government pays the interest on certain loans while the student is in school on at least a half-time basis, in a grace period, or in a period of deferment.

TG helps families, students, and schools by providing financial aid information and related services. TG also helps borrowers successfully repay their federal student loans.