Federal Direct Loans

FREQUENTLY ASKED QUESTIONS ABOUT DIRECT LOANS

If I had previously received a Stafford or PLUS Loan through a lender, do I have to change to the Direct Loan Program?
 YES, all students and parents, who apply for a Stafford or PLUS Loan beginning with the 2010-2011 academic year (starting summer 2010), will be borrowing through the Federal Direct Loan Program. As always, students may apply for private (non-federal) loans through the lender of their choice.

How will repayment work if I have FFELP and Direct loans?
 You have the choice of repaying your FFELP Loans separately according to the terms of repayment agreed to in your promissory note with your lender(s), or you can consolidate your FFELP Loans with your Direct Loans into one payment after you leave school. For more information on Direct Loan Consolidation, you may go to www.loanconsolidation.ed.gov

What happens to the Stafford loans I borrowed in previous years? Will they still be deferred now that UW-L is changing its loan process?
 Your Stafford loans from previous years should remain in deferment as long as you are enrolled at least half-time for your program. You may be responsible for notifying your lender if your enrollment status changes.

Where can I find information about who services my other federal loans?
 You can find information about the servicers of your other federal loans at www.nslds.ed.gov . You will need your pin number from the FAFSA to access this information.

What are the benefits in the Direct lending program?
 The Direct Loan Program offers:
• A guaranteed source of funding for federal student loans
• A lower interest rate on Graduate and Parent PLUS loans
• A single point of service for students or parents during repayment
• Additional repayment options and interest rate reductions for on time payments
• The Public Service Loan Forgiveness Program

Where can I get more information on repayment and forgiveness programs?
 You can learn about the types and terms of federal loan repayment and the potential forgiveness programs at http://federalstudentaid.ed.gov/students.html.

Will there be any additional requirements for me to receive my aid from Direct lending?
 · The application process for Direct Loans is the same as previous years. Students must complete the FAFSA.
· All first-time Direct Loan borrowers will need to complete a new Direct Loan Master Promissory Note (MPN).

How can I receive Direct Loans?
 The financial aid office will process your FAFSA application and send you an e-mail notification when your financial aid is ready to review and accept in WINGS.  Once you have accepted your awards and completed a new Direct Loan MPN your loans should be set to apply electronically to your student bill. However you are encouraged to check your financial aid information and “to do” list through WINGS as well as read any and all e-mails you receive from the Financial Aid Office.