On July 1, 1994, the federal government began operation of a new loan program called the William D. Ford Federal Direct Loan Program. This program includes the Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans. The federal government does not charge interest on a Subsidized loan while the borrower is enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment. However, interest is charged throughout the life of an Unsubsidized loan, and it starts to accrue on the date of disbursement.

Direct Loan funds are provided by the federal government to Sinclair. Sinclair disburses the loan proceeds to a student by crediting the student's account and mailing a check for any loan amount in excess of the student's fees. Federal law requires that all Ford Direct Loans be disbursed in at least two installments. Students receiving a loan for the entire academic year, will be set up to receive a check in each quarter. Students receiving a loan for just one quarter, will still receive their loans in two disbursements. The second disbursement will not be made before half of the quarter is over. In addition, federal law requires that all new borrowers cannot receive a loan disbursement until after 30 days have elapsed from the beginning of the quarter.

Disbursement checks will be mailed to the student's address as maintained in the Registration Office. An incorrect address will greatly increase the amount of time it takes a student to receive a loan check. Address changes should be made immediately to help insure that the first disbursement of a loan has the correct address.