Why did UC Denver enter the Direct Loan Program?
A. Federal Direct Lending 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 Federal Family Education Loan Program (FFELP) lenders have exited the business. Some lenders have even had to withhold second disbursements of previously approved loans. The majority of students at AMC received their FFELP loans through the school as lender program. This program allowed the university to earn income as a lender and then use that income to fund need-based grants to students. UC Denver’s partner in the school as lender program is unable to fund the program for the 08-09 school year. Since our partner can no longer fund the program those students will now need to select a new lender and sign a new promissory note. By entering the Direct Loan Program, students will not have to shop around for a lender or worry t
