A federally subsidized loan program under which the school lends money to undergraduate and graduate college students; formerly called the National Direct Student Loan Program. The amounts available are (as of 1990) a maximum of $4,500 for vocational programs or the first two years of a college program leading to a bachelor’s degree; up to $9,000 after two years in a bachelor’s program; and up to $18,000 for graduate or professional study (this would include amounts borrowed under the program for undergraduate study). The student signs a promissory note, and money is either paid to the student directly or credited to the school account. Interest charged is only 5 percent, and the repayment period is up to 10 years. Repayments of at least $30 a month do not begin until nine months after the student either leaves school or drops below half-time, though payments may be further delayed under certain circumstances.