The presently disclosed subject matter provides in vitro methods of inducing differentiation of stem cells into glial competent cells (e.g., astrocyte precursors) and astrocytes, and glial competent cells (e.g., astrocyte precursors) and astrocytes generated by such methods. The presently disclosed subject matter also provides uses of such glial competent cells (e.g., astrocyte precursors) and astrocytes for treating neurodegenerative disorders.