The William D. Ford Federal Direct Loan Program (FDLP) is a special government student loan program to provide low-interest loans to students and parents.
The program provides two types of loans, subsidized and unsubsidized, besides dishing out some of the lowest rates in lending. The difference between these two types of loans could save you thousands of dollars.
Subsidized student loans are a part of the direct loan program to pay the interest on student loans while you’re still in school and while the loan is in deferment.
Versus subsidized loans, unsubsidized student loans start accruing interest as soon as you get the loan. You still don’t have to start making payments until you graduate.
For undergraduate students, you can borrow from $5,500 up to $12,500 per year in direct loans depending on your year in school and other factors. Graduate students are allowed to borrow up to $20,500 in unsubsidized loans.