Why did UC Merced enter the Direct Loan Program?
A. Federal Direct Lending provides the most STABLE source of loan funding available because the funds are provided directly by the U.S. Treasury. The instability of the debt markets, and uncertainty with what will happen next, strongly influenced our decision to find the most secure solution possible. While there are many private lenders still in the FFELP program, we were concerned about future developments that could negatively impact students, who were already impacted by the turmoil over the last year. The Direct Loan program provides certainty that access to student loans will not be a problem in the future.
