William D. Ford Direct Loan Program
On March 25, 2010, the U.S. House of Representatives and the U.S. Senate passed The Health Care and Education Affordability Reconciliation Act of 2010 ("HCEARA"-H.R. 4872) . This bill made major changes in several federal student aid programs AND mandated that, effective July 1, 2010, all federal student loans (Stafford, PLUS, and Grad PLUS) be originated through the Federal Direct Loan Program. The Family Federal Education Loan Program, which permitted private lenders to originate these loans, was eliminated effective June 30, 2010.
President Obama signed the bill into law on March 30, 2010.
What do I have to do to get my loan funds ?
- Annually complete the FAFSA (Free Application for Federal Student Aid),
- Provide any documents requested by our office, and accept or decline your federal student loans.
- FIRST TIME BORROWERS will have to complete a new Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Loyola.
" Can I complete the new MPN now to get a head start? "
- Yes, the Department of Education has launched a new Web site that will serve as a portal for Direct Loan borrowers to manage their Direct Loans. The new Web site is StudentLoans.gov. Borrowers willl use the StudentLoans.gov web site to:
- complete Stafford and / or GradPLUS Entrance Counseling,
- complete a Direct Loan Electronic Master Promissory Note ("MPN")
- You will need the same PIN that you used for your FAFSA to electronically sign the note. If you do not have a PIN, you may obtain one via http://www.pin.ed.gov.
- view electronic loan correspondence such as disclosure statements, and
- link to other tools and resources
- Note: If you will borrow from BOTH the Stafford and Grad PLUS programs, you will need to complete a separate MPN for each loan program.
"What Else Do I Have to Do? "
- Students who are borrowing for the first time will need to complete an Entrance Counseling Session. Continuing students who currently are participating in the Stafford Loan Program do not have to complete a new Entrance Counseling session with the Direct Loan Program . Effective March 28, 2010, students can go to StudentLoans.gov to complete this requirement.
"What About the Direct PLUS / Grad PLUS Program?"
- Check this page for more information
Consolidating All Prior Loans
A Consolidation Loan allows you to combine all the federal student loans you received to finance your college education into a single loan. Borrowers will be able to consolidate all of their prior Stafford, Grad PLUS or PLUS Loans through the Federal Direct Consolidation Program.
- Currently enrolled students with Federal Stafford, GradPLUS or PLUS loans should pay particular attention to the option to consolidate all of their prior federal loans into a Federal Direct Consolidation Loan between July 1, 2010 and June 30, 2011.
Updated October 20, 2012