What are the benefits of switching to the Federal Direct Loan Program?
• Federal Stafford and PLUS/Grad PLUS loans are currently a stable, guaranteed source of funding. • The option of an income-contingent or income-based repayment plan is offered with Direct Lending. • Students in the Direct Loan program who enter into public service jobs may qualify for loan forgiveness. • The PLUS loan credit approval process in Direct Lending uses a more liberal credit assessment. • The interest rate for Direct PLUS Loans is 7.9% as compared to 8.5% in the FFEL program. Will I still be able to borrow from the same lender as last year? No. If you borrow a Federal Stafford, Federal Parent PLUS or Federal Grad PLUS loan for the 2010-2011 academic year, you will be required to borrow through the Direct Loan program. This change will require you to complete a new Master Promissory Note (MPN). If I borrowed Federal Stafford, PLUS, and/or GradPLUS loans in prior years (or for the current 2009-2010 year) and I borrow loans for 2010-2011, will I have to repay two different len
