About Federal Loans

The Health Care and Education Reconciliation Act of 2010 established the Direct Loan Program as the single federal loan delivery system effective July 1, 2010.

Direct Lending has revolutionized federal student loan delivery by providing borrowers and participating schools with a simple, streamlined, accountable system that saves taxpayers billions of dollars. Borrowers benefit from the simplicity of the program and features such as income contingent loan repayment, which, over time, may result in lower default rates and, reduced administrative burdens for university financial aid departments.

For more information about all aspects of the Direct Loan Program, see the Direct Loans portal of the U.S. Department of Education website.