FFELP Transition to DL

  • What does the change to the Direct Loan Program mean?

    Previously, your school had been participating in the Federal Family Education Loan (FFEL) program, which required students or parents to select a lender from a list of banks, credit unions, or other financial institutions as the holder of their loan. Under the William D. Ford Federal Direct Loan program, your lender will be the federal government.
  • How does this change impact me?

    If you are a new or a continuing student who plans to borrow a federal Stafford or PLUS loan, you are required to complete a Federal Direct Loan Master Promissory Note, even if you have already completed a Master Promissory Note for the FFEL program in the past. If your parents are borrowing a parent loan, they too will have to complete a new PLUS Master Promissory Note for the Federal Direct Loan program.
  • When should I complete the Federal Direct Loan MPN?

    After you accept your loan offer in your financial aid award package, go to studentloans.gov/myDirectLoan to complete your electronic Master Promissory Note for the Federal Direct Loan. You will need your federal PIN to confirm your identity.
  • If I have already completed a Direct Loan MPN for another school, do I need to complete another one?

    No, if you currently have a valid Direct Loan MPN on file, you do not need to complete a new MPN. To retrieve a copy of your MPN, go to studentloans.gov/myDirectLoan
  • What are the benefits in the Federal Direct Loan program?

    There are more repayment plans through the Federal Direct Loan program, specifically, the income contingent plan. If a student does not repay their loans in 25 years, the government forgives the balance of the loan. In addition, the interest never exceeds 10% of the loan principal. Federal Direct Lending has the new Public Service Loan Forgiveness program that will forgive remaining debt after 10 years of eligible employment and qualifying loan payments for people working in key public service professions such as teaching, government, social work, law enforcement, and non-profit 501(c)(3) organizations. Since borrowing is directly through the federal government, borrowers make loan payments to the Department of Education for the life of their loans. It's "one-stop-shopping" from loan application through repayment.
  • Where can I find out more information about the Federal Direct Loan program?

    Go to: http://www.ed.gov/offices/OSFAP/DirectLoan/student.html
  • Where can I find information about my Federal Direct Loan?

    The Direct Loan Servicer is the one-stop center for managing your loan. Visit them on-line at: https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp.
  • If I currently have a loan through the FFEL program, will I have to repay two different lenders?

    You have the option of consolidating all of your federal loans either with the Direct Loan program or with any other lender that offers federal consolidation loans.
  • Where can I find information about my current and prior FFEL program loans?

    Information about your federal loans can be accessed via the National Student Loan Data System (NSLDS) at http://www.nslds.ed.gov. You will need your federal PIN to confirm your identity.
  • Will my Stafford loans that I borrowed through FFELP still be deferred now that the school is changing its loan process?

    As long as you are enrolled in school on at least a half time basis, your prior year federal loans will continue to be deferred.
  • Does the change to Direct Lending affect my private (alternative) loans?

    No, this change only affects federal Stafford and PLUS loans.
  • How do I request a forbearance or deferment through the Direct Loan Program?

    For Direct Loan forms, go to: https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp, click on Forms. For Students: click on the appropriate form needed. For Parent PLUS Deferments: click on the PLUS Loan Student In-School at Least Half Time Deferment (disbursed on or after 7/1/08). Parents will need to print the form & complete (parent is the borrower). At the top of form, please include the student’s name and ID. If you need help completing the form please call the Department of Education (DOE) at 1-800-848-0979.