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Federal Direct Stafford/Ford Loan Program [Education]
Understanding the Federal Direct Stafford/Ford Loan Program [Education]
Definition & Meaning
The Federal Direct Stafford/Ford Loan Program is a federal loan initiative designed to assist undergraduate, graduate, and professional students in financing their education. This program is part of the Direct Loan Program, which is authorized under Title IV, Part D of the Higher Education Act (HEA). The loans provided under this program help students attending eligible institutions cover their educational expenses. Importantly, the federal government pays the interest on these loans while borrowers are enrolled in school, during grace periods, or if they qualify for deferment.
Table of content
Legal Use & context
This loan program is primarily used in the context of higher education financing. It falls under the realm of education law and financial aid regulations. Legal practitioners may encounter this term when advising clients on student loan options, financial aid eligibility, or navigating repayment plans. Individuals can manage their loan applications and repayment processes using resources like US Legal Forms, which provides templates and guidance for related legal documents.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A first-year undergraduate student applies for a Federal Direct Stafford Loan to cover tuition and living expenses. They receive a subsidized loan, meaning they do not have to pay interest while enrolled.
Example 2: A graduate student takes out a Federal Direct Stafford Loan to fund their education. After graduation, they enter a repayment plan that considers their income level. (hypothetical example)
Relevant laws & statutes
The Federal Direct Stafford/Ford Loan Program is governed by the Higher Education Act (HEA), specifically Title IV, Part D. Relevant citations include:
20 U.S.C. 1071 - Definitions related to student assistance.
20 U.S.C. 1087a - Direct Loan Program provisions.
Comparison with related terms
Term
Description
Key Differences
Federal Direct PLUS Loan
A loan for graduate students and parents of dependent undergraduate students.
PLUS loans require a credit check, while Stafford loans may not.
Federal Perkins Loan
A campus-based loan program for students with exceptional financial need.
Perkins loans are no longer available for new borrowers as of 2017.
Common misunderstandings
What to do if this term applies to you
If you are considering applying for a Federal Direct Stafford Loan, start by filling out the Free Application for Federal Student Aid (FAFSA). This will determine your eligibility for federal financial aid. You can also explore US Legal Forms for templates that can assist you in managing your loan documentation. If you have questions or face complex financial situations, seeking advice from a financial aid advisor or legal professional may be beneficial.
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