Direct Loan Program FAQs
What is the difference between FFELP and the William D. Ford Federal Direct Loan Program?
In the Direct Loan Program, the U.S. Department of Education acts as a lender, providing funds for Stafford loans and PLUS Loans. With FFELP, students chose a bank or lender; the college then certified that students and parents were eligible for the loans and applied the loan proceeds to student accounts.
If I had previously received a Stafford or PLUS Loan through a lender, do I have to change to the Direct Loan Program?
YES, ALL CSU Stanislaus students needing a Stafford or PLUS Loan for the 2011 – 2012 academic year will now borrow through the Direct Loan Program. As always, you may apply for private (non-federal) loans through the lender of your choosing. We recommend that you accept your federal loans first because generally the rates and terms are more favorable from the federal government than through the private education loans.
What happens to the loans I borrowed from a lender in the FFELP Program?
You have the choice of repaying your FFELP Loans according to the terms of repayment agreed to in your promissory note, or you can consolidate your FFELP Loans with your Direct Loans after you leave school. For more information on Direct Loan Consolidation, you may go to http://loanconsolidation.ed.gov/.
What steps do I need to take to get a FEDERAL DIRECT or PLUS Loan from the U.S. Department of Education?
- Apply for financial aid using the FAFSA, if you have not already done so.
- After receiving your 2012 – 2013 Financial Aid Award Notice, accept your Federal Direct Loan by logging into the mycsustan account and accessing the Student Center. Students will be able to accept their student loans, beginning June 1st. PLUS Loans must be requested using a paper PLUS Loan Request Form.
- Complete a Direct Loan Master Promissory Note (MPN) on the Direct Loan website at:www.studentloans.gov
- Complete Direct Loan Entrance Counseling by following the links located at:
- https://studentloans.gov/myDirectLoan/index.action
Who should I contact if I have questions about CSU Stanislaus’ move to the Direct Loan Program?
Call (209) 667-3336 or email us at financial_aid@csustan.edu for more information.