Direct Loans - Student and/or Parent
Dear Student/Parent(s):
Many lenders participating in the Federal Family Education Loan (FFEL) program have reduced borrowers’ benefits or have withdrawn from the loan program because of the challenges lenders are experiencing during the current economic environment. President Obama has proposed changes to the FFEL program.
The proposed legislation would require colleges and universities to administer federal student loans only through the William D. Ford Federal Direct Loan Program.
The Direct Loan Program offered by the Department of Education provides a streamlined, cost-effective, and dependable loan program for students and parents. Even though the proposed change has not been presented to the Senate; but, has passed in the House, Spelman College has made the decision to participate in the William D. Ford Federal Direct Loan program exclusively beginning with the fall semester 2010.
The Direct Loan Program will allow students and parents to borrow money for higher education related expenses as they always have. However, through this program, loans are administered by the federal government as opposed to banks or other financial institutions.
As Spelman moves to direct lending, all currently enrolled students who have received loans in the past and want to continue receiving loans in the future must complete a new master promissory note (MPN) and entrance loan counseling.
In order for Spelman to disburse your student loan funds to your account you must complete a new MPN and entrance loan counseling at the following Web site:
While we do not anticipate any fundamental changes in the composition of your financial aid package, we do expect there will be questions about this process.
Please visit our frequently asked questions area for more information about direct lending.
If you have any additional questions or concerns regarding the new loan program, please contact Ms. Standrine Francis at
404 270-5211 sfrancis@spelman.edu or Ms. Helena Kindred 404 270-5216 hkindred@spelman.edu .
Sincerely,
Lenora J. Jackson
Director of Student Financial Services
