Why did UW Colleges enter the Direct Loan Program?
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/lending markets with numerous student loan lenders leaving the FFEL Program and uncertainty with what would happen next strongly influenced our decision to find the most secure solution possible. As the Direct Loan Program is not impacted by changes in the economy, it provides certainty that access to student loans will not be a problem in the future. Furthermore, the United States Congress has passed the Student Aid and Fiscal Responsibility Act (“SAFRA”) and the President has signed it into law. This legislation requires all schools to participate exclusively in the William D. Ford Direct Loan Program effective July 1, 2010.
