William D. Ford Federal Direct Loan Program The William D. Ford Federal Direct Loan Program consists of four separate programs providing federally insured, low-interest, long-term loans to you or your parents to help you cover the costs of attending college. The Federal Government is your lender, not a bank or other lending institution, and makes the loan directly to you or your parents through the school. The school determines your eligibility, calculates the loan amount, collects the promissory note and disburses the money. Once the loan is made, it is managed and collected by the U.S. Department of Education. Your direct loan is money that is borrowed and must be repaid after you leave school.