Why did the University of the Arts enter the William D. Ford Federal Direct Loan (Direct Loan) Program?
The University of the Arts moved to the Direct Loan programs due to the Student Aid and Fiscal Responsibility Act (SAFRA) signed on March 30, 2010, which mandated all schools switch to Direct Loans (DL). Direct Loans provide the advantage of a guaranteed source of funding for students and parents and to simplify the application and certification of federal loans. Federal Direct Lending provides the most stable source of loan funding available because the funds are provided directly by the U.S. Treasury. 2. When does the Federal Direct Loan Program begin for the University of the Arts? Beginning with the 2010-2011 academic year, the University will no longer participate in the Federal Family Education Loan Program (FFELP) where students and parents borrow federal loans through a private lender. Instead, Stafford and PLUS loans will be available from the William D. Ford Federal Direct Loan (Direct Loan) Program where the federal government is the lender. Loans for the Fall 2010 semester
