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Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 12. Updated

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Title: Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 12. Updated
Language: English
Authors: Hegji, Alexandra, Library of Congress, Congressional Research Service (CRS)
Source: Congressional Research Service. 2023.
Availability: Congressional Research Service. Web site: https://crsreports.congress.gov/
Peer Reviewed: N
Page Count: 127
Publication Date: 2023
Intended Audience: Policymakers
Document Type: Reports - Descriptive
Descriptors: Student Loan Programs, Federal Aid, Federal Legislation, Debt (Financial), Loan Repayment, Eligibility, Credit (Finance), Loan Default, Student Financial Aid
Laws, Policies and Program Identifiers: Stafford Student Loan Program, Federal Direct Student Loan Program
Abstract: The William D. Ford Federal Direct Loan (Direct Loan) program is the single largest source of federal financial assistance to support students' postsecondary educational pursuits. The U.S. Department of Education estimates that in FY2024, $85.8 billion in new loans will be made through the program. As of the end of the first quarter of FY2023, $1.4 trillion in principal and interest on Direct Loan program loans, borrowed by or on behalf of 38.3 million individuals, remained outstanding. For many individuals, borrowing a federal student loan through the Direct Loan program may be among their first experiences in incurring a major financial obligation. Upon obtaining a loan, a borrower assumes a contractual obligation to repay the debt over a period that may span a decade or more. Loans were first made through the Direct Loan program in 1994. Since then, Congress has periodically made changes to the program and the terms and conditions of loans. Changes have impacted program aspects such as the availability of loan types, interest rates, loan repayment, loan discharge and forgiveness, and the consequences of default. Over time, the accumulation of changes--many of which are differentially applicable to borrowers or loan types--has resulted in a set of loan terms and conditions that are voluminous and complex. Congress may contemplate making future changes to loan terms and conditions. This report has been prepared to provide Congress with a comprehensive description of the terms and conditions and borrower benefits that are applicable to loans made through the Direct Loan program. Emphasis is placed on discussing loan types, provisions related to borrower eligibility, amounts that may be borrowed, interest and fees, loan repayment, repayment relief, loan forgiveness benefits, the consequences of default, and the methods used to ensure borrowers are informed about the terms and conditions of their loans and their obligation to repay them.
Abstractor: ERIC
Entry Date: 2023
Accession Number: ED629822
Database: ERIC
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  Data: Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 12. Updated
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  Data: The William D. Ford Federal Direct Loan (Direct Loan) program is the single largest source of federal financial assistance to support students' postsecondary educational pursuits. The U.S. Department of Education estimates that in FY2024, $85.8 billion in new loans will be made through the program. As of the end of the first quarter of FY2023, $1.4 trillion in principal and interest on Direct Loan program loans, borrowed by or on behalf of 38.3 million individuals, remained outstanding. For many individuals, borrowing a federal student loan through the Direct Loan program may be among their first experiences in incurring a major financial obligation. Upon obtaining a loan, a borrower assumes a contractual obligation to repay the debt over a period that may span a decade or more. Loans were first made through the Direct Loan program in 1994. Since then, Congress has periodically made changes to the program and the terms and conditions of loans. Changes have impacted program aspects such as the availability of loan types, interest rates, loan repayment, loan discharge and forgiveness, and the consequences of default. Over time, the accumulation of changes--many of which are differentially applicable to borrowers or loan types--has resulted in a set of loan terms and conditions that are voluminous and complex. Congress may contemplate making future changes to loan terms and conditions. This report has been prepared to provide Congress with a comprehensive description of the terms and conditions and borrower benefits that are applicable to loans made through the Direct Loan program. Emphasis is placed on discussing loan types, provisions related to borrower eligibility, amounts that may be borrowed, interest and fees, loan repayment, repayment relief, loan forgiveness benefits, the consequences of default, and the methods used to ensure borrowers are informed about the terms and conditions of their loans and their obligation to repay them.
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      – Text: English
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      – SubjectFull: Student Loan Programs
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      – SubjectFull: Federal Aid
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      – SubjectFull: Federal Legislation
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      – SubjectFull: Debt (Financial)
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      – SubjectFull: Loan Repayment
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      – SubjectFull: Eligibility
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      – SubjectFull: Credit (Finance)
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      – SubjectFull: Loan Default
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      – SubjectFull: Student Financial Aid
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      – SubjectFull: Stafford Student Loan Program
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      – SubjectFull: Federal Direct Student Loan Program
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      – TitleFull: Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 12. Updated
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