What should a school do if a student receives a FFELP loan before July 1, 2010, then qualifies for additional funds for the same loan period that would be disbursed on or after July 1, 2010?
A. If the existing FFELP loan can be increased, the school may add the increased funds and disburse it as a FFELP loan. However, if the processing of the loan requires new certification, the loan must be certified and disbursed as a Direct Loan. ED will waive the prohibition against making loans under the two different programs to the same borrower for the same loan period.
Related Questions
- Must a school determine a students eligibility for a subsidized Federal Stafford Loan before determining a parent borrowers eligibility for a Federal PLUS Loan?
- If Federal PLUS Loan funds create a FSA credit balance, may the funds be paid to the student instead of the parent borrower?
- I have received a Student Choice loan and need additional funds for next academic year. How do I request more money?
