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Federal Direct Unsubsidized Stafford/Ford Loan Program [Education]
Understanding the Federal Direct Unsubsidized Stafford/Ford Loan Program [Education]
Definition & Meaning
The Federal Direct Unsubsidized Stafford/Ford Loan Program is a federal loan program designed to help students pay for their education. It is part of the Direct Loan Program authorized by the Higher Education Act (HEA). This program provides loans to undergraduate, graduate, and professional students who attend eligible institutions. Unlike subsidized loans, borrowers are responsible for paying the interest that accrues on these loans from the time the loan is disbursed.
Table of content
Legal Use & context
This loan program is primarily used in the context of educational financing. It falls under federal education law and is relevant for students seeking financial assistance for their studies. Legal practitioners may encounter this term when advising clients on student loans, financial aid options, or debt management. Users can manage their loan applications and repayment processes using legal templates available through platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A graduate student attending a university applies for a Federal Direct Unsubsidized Stafford/Ford Loan to cover tuition and living expenses. They are responsible for the interest that accrues while they are in school.
Example 2: An undergraduate student receives a loan through this program to help pay for their education. They will need to start repaying the loan after graduation, including the interest that has accumulated during their studies.
Relevant laws & statutes
The Federal Direct Unsubsidized Stafford/Ford Loan Program is governed by the Higher Education Act (HEA) of 1965, specifically Title IV, Part D. Additional regulations can be found in 34 CFR 668.2 (b).
Comparison with related terms
Term
Definition
Key Differences
Subsidized Stafford Loan
A federal loan for students with demonstrated financial need.
Interest is paid by the government while the student is in school.
Direct PLUS Loan
A federal loan for graduate or professional students, or parents of dependent undergraduate students.
Higher borrowing limits and credit checks are required.
Common misunderstandings
What to do if this term applies to you
If you are considering a Federal Direct Unsubsidized Stafford/Ford Loan, evaluate your financial needs and compare it with other loan options. You can complete the application through the Free Application for Federal Student Aid (FAFSA). For assistance, explore US Legal Forms for templates that can help you manage your loan documentation. If your situation is complex, consider consulting a financial advisor or legal professional.
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