Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 18. 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 18. Updated |
|---|---|
| Language: | English |
| Authors: | Alexandra Hegji, Library of Congress, Congressional Research Service (CRS) |
| Source: | Congressional Research Service. 2024. |
| Availability: | Congressional Research Service. Web site: https://crsreports.congress.gov/ |
| Peer Reviewed: | N |
| Page Count: | 134 |
| Publication Date: | 2024 |
| Intended Audience: | Policymakers |
| Document Type: | Reports - Descriptive |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Student Loan Programs, Debt (Financial), Educational Finance, Federal Programs, Loan Repayment, Loan Default, Paying for College, Federal Aid, Higher Education, Information Dissemination, Eligibility, Credit (Finance), Financial Literacy, Student Financial Aid |
| 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 FY2025, $93.1 billion in new loans will be made through the program. As of the end of the third quarter of FY2024, $1.4 trillion in principal and interest on Direct Loan program loans, borrowed by or on behalf of 37.5 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: | 2025 |
| Accession Number: | ED671140 |
| Database: | ERIC |
| FullText | Text: Availability: 0 CustomLinks: – Url: https://eric.ed.gov/contentdelivery/servlet/ERICServlet?accno=ED671140 Name: ERIC Full Text Category: fullText Text: Full Text from ERIC |
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| Header | DbId: eric DbLabel: ERIC An: ED671140 AccessLevel: 3 PubType: Report PubTypeId: report PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 18. Updated – Name: Language Label: Language Group: Lang Data: English – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Alexandra+Hegji%22">Alexandra Hegji</searchLink><br /><searchLink fieldCode="AR" term="%22Library+of+Congress%2C+Congressional+Research+Service+%28CRS%29%22">Library of Congress, Congressional Research Service (CRS)</searchLink> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="SO" term="%22Congressional+Research+Service%22"><i>Congressional Research Service</i></searchLink>. 2024. – Name: Avail Label: Availability Group: Avail Data: Congressional Research Service. Web site: https://crsreports.congress.gov/ – Name: PeerReviewed Label: Peer Reviewed Group: SrcInfo Data: N – Name: Pages Label: Page Count Group: Src Data: 134 – Name: DatePubCY Label: Publication Date Group: Date Data: 2024 – Name: Audience Label: Intended Audience Group: Audnce Data: Policymakers – Name: TypeDocument Label: Document Type Group: TypDoc Data: Reports - Descriptive – Name: Audience Label: Education Level Group: Audnce Data: <searchLink fieldCode="EL" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="EL" term="%22Postsecondary+Education%22">Postsecondary Education</searchLink> – Name: Subject Label: Descriptors Group: Su Data: <searchLink fieldCode="DE" term="%22Student+Loan+Programs%22">Student Loan Programs</searchLink><br /><searchLink fieldCode="DE" term="%22Debt+%28Financial%29%22">Debt (Financial)</searchLink><br /><searchLink fieldCode="DE" term="%22Educational+Finance%22">Educational Finance</searchLink><br /><searchLink fieldCode="DE" term="%22Federal+Programs%22">Federal Programs</searchLink><br /><searchLink fieldCode="DE" term="%22Loan+Repayment%22">Loan Repayment</searchLink><br /><searchLink fieldCode="DE" term="%22Loan+Default%22">Loan Default</searchLink><br /><searchLink fieldCode="DE" term="%22Paying+for+College%22">Paying for College</searchLink><br /><searchLink fieldCode="DE" term="%22Federal+Aid%22">Federal Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="DE" term="%22Information+Dissemination%22">Information Dissemination</searchLink><br /><searchLink fieldCode="DE" term="%22Eligibility%22">Eligibility</searchLink><br /><searchLink fieldCode="DE" term="%22Credit+%28Finance%29%22">Credit (Finance)</searchLink><br /><searchLink fieldCode="DE" term="%22Financial+Literacy%22">Financial Literacy</searchLink><br /><searchLink fieldCode="DE" term="%22Student+Financial+Aid%22">Student Financial Aid</searchLink> – Name: Abstract Label: Abstract Group: Ab 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 FY2025, $93.1 billion in new loans will be made through the program. As of the end of the third quarter of FY2024, $1.4 trillion in principal and interest on Direct Loan program loans, borrowed by or on behalf of 37.5 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. – Name: AbstractInfo Label: Abstractor Group: Ab Data: ERIC – Name: DateEntry Label: Entry Date Group: Date Data: 2025 – Name: AN Label: Accession Number Group: ID Data: ED671140 |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=eric&AN=ED671140 |
| RecordInfo | BibRecord: BibEntity: Languages: – Text: English PhysicalDescription: Pagination: PageCount: 134 Subjects: – SubjectFull: Student Loan Programs Type: general – SubjectFull: Debt (Financial) Type: general – SubjectFull: Educational Finance Type: general – SubjectFull: Federal Programs Type: general – SubjectFull: Loan Repayment Type: general – SubjectFull: Loan Default Type: general – SubjectFull: Paying for College Type: general – SubjectFull: Federal Aid Type: general – SubjectFull: Higher Education Type: general – SubjectFull: Information Dissemination Type: general – SubjectFull: Eligibility Type: general – SubjectFull: Credit (Finance) Type: general – SubjectFull: Financial Literacy Type: general – SubjectFull: Student Financial Aid Type: general Titles: – TitleFull: Federal Student Loans Made through the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers. CRS Report R45931, Version 18. Updated Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Library of Congress, Congressional Research Service (CRS) – PersonEntity: Name: NameFull: Alexandra Hegji IsPartOfRelationships: – BibEntity: Dates: – D: 15 M: 10 Type: published Y: 2024 Titles: – TitleFull: Congressional Research Service Type: main |
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