Why is FCC choosing Direct Lending?
FCC made the decision to switch our federal loan processing from FFELP (using lending institutions) to Direct (U.S. Department of Education as lender) to assist borrowers with ease of understanding. All processing and disbursements are received directly from the federal government and integrate with other school financial aid processes. The Federal government remains the lender for the life of the loan and the loan will not be sold. Additionally Stafford borrowers will receive an increase in the net amount disbursed because the federal government offers and “up-front” 1% rebate of the amount borrowed. To keep the 1% “up-front” interest rebate, a borrower must make their first twelve required monthly payments on time (within six (6) days of the due date).
