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Definition: Federal Direct Student Loan Program – FDSLP
The FDSLP or Federal Direct Student Loan Program is a student loan scheme offered by the United States Department of Education. The FDSLP provides education loans for post secondary students and their parents at low interest rates. These loans are provided directly by the US Department of Education rather than a bank or a financial institution hence the word “direct” in their name.
The FDSLPs were started as a part of the Reauthorization of the Higher Education Act under the presidency of George Bush sr. on 23 July 1992. At the end of 2012 the total loan portfolio balances were $473 billion. A lot of economists, however, believe that the level of student loan debts in the economy has reached extremely high such that it has reached problematic levels and need to be reduced for the growth of the US economy.
The following are the eligibility criteria for getting an FDSLP:
• The student must be a citizen of USA.
• The student must be enrolled in a school that participates in direct loan program at least half time.
• The student must be enrolled in a program that leads to a degree or a certificate awarded by the school.
• The student must be pursuing an undergraduate course and must have financial needs.