Why is University of Maryland College Park changing to the Direct Loan Program?
A. As many of you are aware, the Reconciliation Bill has passed both the House and the Senate and is now law. Included in the Reconciliation Bill was HR3221, a Student Loan Bill, which requires all federal educational loans be processed through the Federal Government rather than through private lenders. Q. What is the difference between Direct Loans and the Federal Family Education Loan Program (FFELP)? A. The primary difference between Direct Loans and the Federal Family Education Loan Program, (Stafford Loan) is the source of funding. While FFELP loans are funded through a variety of banks and private lending institutions, Direct Loan funds are borrowed directly from the federal government. Additionally, Direct Loans borrowers have a single contact, the Direct Loan Servicing Center, for everything related to the repayment of the loan. Q. Does this change impact me? A. If you are a new or continuing student or parent borrower who plans to borrow a federal loan for the 2010-2011 academ
