This training guide describes the provisions of the Federal Direct Student Loan Program, identifies the functions of the different partners in the program, and explains the responsibilities of participating schools. Topics covered include an overview of the participants and the program's operation; determining of eligibility and loan amount; creating loan origination records; obtaining promissory notes with disclosure information; conveying of records and notes; requesting and receiving funds (for originating schools and for schools using alternate originator services); disbursing funds; disbursing reports; reconciling funds and loan records; conducting entrance/exit loan interviews; certifying borrower's enrollment status; special considerations for the Federal Direct Plus Loan Program; loan servicing and collection; implementing a direct loan quality assurance system; focusing on quality in the financial aid office; and using the Direct Loan software. Numerous forms required to fulfill these responsibilities are included. (CK)