| Indiana University
recently made the decision to move to the William Ford
Direct Student Loan Program beginning with fall semester
of the 2008-09 school years .
Why was the switch made?
Right now The William Ford
Direct Lending Program provides the most stable source
of loan funding available because the funds are provided
by the U.S. Treasury. The current instability of the
debt markets strongly influenced our decision to find
the most secure solution possible. Numerous FFELP lenders
who rely on these debt markets have stopped making
new loans. Some lenders have even had to withhold second
disbursements of previously approved loans.
What are the advantages ?
Under Direct Loans, there will be a single point of
contact to turn to with any problems that might arise
A guaranteed source of income for our students
Most lenders offered benefits during repayment after
a student makes payments for two to four years. Very
few students end up receiving those benefits. In the
Direct Loan Program, students earn benefits after only
one year.
What changes will students see ?
The only major change for students will be that each
student who had a loan through the Stafford Loan Program
must complete a new Direct Loan Master
Promissory Note (MPN). |
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