Introduction
Under the William D. Ford Federal Direct Loan Program (Direct Loan Program), the U.S. Department of Education (the Department) makes loans to help students and parents pay the cost of attendance (COA) at a postsecondary school. This volume of the Federal Student Aid Handbook provides information to assist schools in determining student and parent eligibility for Direct Loans, counseling student borrowers, and awarding Direct Loans.
Changes for 2025-2026
We have made the following changes in Volume 8 for 2025-2026:
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In Chapter 3, we have revised the discussion of loan periods to provide a limited exception to the longstanding requirement that the loan period for a Direct Loan may not include any terms in which the borrower is ineligible to receive Direct Loan funds.
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Also in Chapter 3, we have added a slightly revised and expanded version of guidance on the treatment of Direct Loan disbursements made after the date of a borrower’s death that was previously in Volume 4, Chapter 2 of the FSA Handbook under the heading “Checking Eligibility at the Time of Disbursement.” Because this guidance is specific to Direct Loans, we believe Volume 8 is a more appropriate location.
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In Chapter 5, we have revised Example 6 to reflect the limited exception to the requirement that a loan period may not include terms in which the borrower is ineligible (see Chapter 3 changes above).
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In Chapter 7, we have revised the discussion of transfer students and abbreviated loan periods to clarify that in some circumstances a transfer student may be eligible to receive more Direct Loan funds for the program at the new school than a non-transfer student would be eligible to receive for that same program.
Except as noted above, there are no other substantive changes to Volume 8 for 2025-2026.