The Federal Direct Loan Program offers:
• Stable funding. Because the program is backed by the U.S. Treasury, it is shielded from the volatility of the credit markets or from banks potentially withdrawing their participation.
• A lower interest rate for PLUS loans. Through Direct Lending, the interest rate drops from 8.5 to 7.9 percent.
• An Upfront Origination Fee Rebate that encourages responsible borrowing and repayment. Upon repayment, you must make your first 12 monthly payments on time for the rebate to become permanent.
• A simpler, streamlined process in which you are no longer required to select a lender or servicer.
• No loan sales. Your loan(s) will never be sold.
• A Public Service Loan Forgiveness program for students working full-time in low-income government and not-for-profit public service jobs.