Why is ISU moving to the Federal Direct Loan Program?
Volatility in the credit markets and reductions in lender subsidies have caused many lenders to stop offering borrower benefits or to discontinue participation in FFELP altogether. Students should find that Federal Direct Loans offers a more streamlined process for obtaining loans. Federal Direct Loans are not sold so students and parents will make payments to the Department of Education through the life of their loans. The customer service process also is streamlined because there is a single point of contact for schools and students.
