For student loans, Adams State College will begin participating exclusively in the Federal Direct Lending Program (DL) for the 2010-11 aid year. Consequently, ASC will withdraw from the Federal Family Education Loan (FFEL) lending program in which students borrow funds for education from private lenders (usually banks or credit unions).
With the Direct Loan program, students borrow directly from the U.S. Department of Education through their school. DL subsidized, unsubsidized, and PLUS loans operate in essentially the same manner as in the FFEL program. Students receive the same interest rates and have similar repayment options. Payments are sent directly to the U.S. Department of Education’s servicer.
As a result of this change, all students who borrow loans in 2010-11 will need to complete a new Direct Loan Master Promissory Note (MPN). Instructions for completing a new MPN will be sent to students starting April 1, 2010.
Switching to DL provides the following benefits:
- Eliminates the uncertainty of lenders exiting the FFEL program.
- Eliminates the need for reprocessing loans for students when lenders exit the program.
- Provides one lender and one payment for new borrowers.
- Allows returning borrowers to consolidate FFEL loans with their Direct Loan at repayment.
- Offers four repayment options for students.Offers interest rate reductions for on-time payments.Allows students to participate in the Public Service Loan Forgiveness Program.
We believe using the Direct Loan Program is the best way to ensure Adams State students receive their loan funds in a timely and efficient manner. If you want more information regarding the transition to DL, please visit our website or call the ASC Financial Aid Office at 719.587.7306.