Federal Direct Loan Program (FDLP)

More Resources

Department of Education Servicers

For more information, contact:

TG Customer Assistance
(800) 845-6267
cust.assist@tgslc.org

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 several types of loans: Direct subsidized, Direct unsubsidized, Direct Parent PLUS (for parents of dependent undergraduate students), Direct Student PLUS (for graduate and professional students), and Direct Consolidation loans. These loans, 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
Direct subsidized and Direct unsubsidized loans are not contingent upon a credit check
A student is not required to make payments on a Direct subsidized, Direct unsubsidized, or Direct Student PLUS loan while enrolled in school on at least a half-time basis; in addition:
- For a Direct subsidized or Direct unsubsidized loan, the borrower is not required to make payments for the six-month period after he or she drops below half-time enrollment
- For a Direct Student PLUS Loan first disbursed on or after July 1, 2008, the 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 Direct Parent PLUS Loan while enrolled in school on at least a half-time basis; in addition, for a Direct Parent PLUS Loan first disbursed on or after July 1, 2008, a parent, upon his or her request, can defer payments:
- 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.

Here are other documents located on www.tgslc.org that you may be interested in: