The Federal Direct Loan program is a system of direct loans, which are offered directly by lenders to qualified borrowers. The Federal Direct Loan program consists of six programs: The Perkins Loan, FFEL Program, Guaranteed loans, subsidized loan for medical expenses, unsubsidized loan for education, and the SBA loans. Of the six programs, the most popular one out them is the Quick Loans, which is available for all SBA clients who want to obtain either subsidized or unsubsidized loans for their business. While all the other loans have their own purpose and different types of requirements, all loans share a common set of conditions.
Loans with names like the FAFSA, for those who want to avail of the William D. Ford Federal Direct Loan for the assistance in education, and the Perkins Loan for the assistance in promoting business opportunities for small business owners, both are similar. Both these loans require the borrower to fulfill certain criteria such as income proof, age proof, and a minimum credit score. In the case of the FAFSA, the under consideration is proof that the applicant is an American citizen or a legal resident alien.
For those who want to avail of the Guaranteed Loan Program, they are required to have a start-up cash requirement of at least one thousand five hundred Euros. For the Perkins Loan, the start-up cash requirement is one thousand two hundred Euros. For the FFEL Program, it is one thousand five hundred Euros. For unsubsidized loans, the conditions and terms are different depending on the institution you choose. The main criteria for the application of this loan program are the employment status of the borrower, ownership of the real estate, and registration of the business