Federal Direct Student Loan Program: Aid Offered Via the FDSLP

The Federal Direct Student Loan Program or FDSLP is one of the most significant educational funding efforts ever undertaken. The program offers various types of aid to help students pay for the costs of college and other types of schools. Nearly all programs available through the FDSLP require that a FAFSA or Free Application for Federal Student Aid be filled out in order to determine eligibility. The Federal Direct Student Loan Program provides federal aid as detailed below:



Federal Student Loans

The US Department of Education offers two types of loans directly to students: the Stafford loan and the Perkins loan. The Stafford loan comes in two sub-types: Subsidized and Unsubsidized. Subsidized programs are especially beneficial in that interest does not accrue on the account while the student is still in school. Unsubsidized loans begin to accumulate interest upon dispersal, so students are often advised to pay at least the interest while they are still in school. The Stafford loan awards up to $5500 per year for dependent undergraduate students, $8000 for independent undergrads, and $20500 per year for graduate and professional students. The Perkins loan has similar maximum amounts.

Federal Grants

Grants offered through the Federal Direct Student Loan Program are perhaps the most beneficial of all types of aid because the student never has to repay a grant. The types and amounts are as follows: Pell Grants - $5500. ACG or Academic Competitiveness Grants - $750 for the first year and $1300 for the second year. IASG Grant or Iraq and Afghanistan Serviceperson’s Grant – Up to the maximum amount for the Pell grant for that year. FSEOG or Federal Supplemental Educational Opportunity Grant - $100-$4000.

Additionally, there may be other types of grants and similar programs available directly through the school that the student is attending. Often schools receive federal funding for internal programs that can prove extremely beneficial. Grants can also be found via outside sources such as civic groups, professional groups, religious groups, and many others.

PLUS Loans

PLUS Loans were designed to permit a parent to pay for the educational expenses of their children without being required to pay all at once. This program is also offered to professional and graduate students and does not have a ceiling on the total amount a person can borrow. Determination for eligibility for these loans requires favorable credit conditions of the person applying and the student meeting all of the conditions set forth to qualify for most types of aid available on the FAFSA.

Federal Work Study

Work study allows a student to gain valuable and relevant experience while earning money to pay for educational expenses. Work study awards are predefined each year, so it is important that a student apply for work study as soon as possible. Once the money is gone for the year, students will not be able to apply for work study unless their school has an internal program.

To get an award from one of these programs now, visit the FDSLP.

For more comprehensive information about federal financial aid, click the word FAFSA to get the best and most accurate federal educational award information possible.