Federal Direct Loan Program

Published: 4/19/2010

Clark State is moving to the Federal Direct Loan Program starting with the 2010-2011 Financial Aid Year! Beginning Summer Quarter 2010, Clark State will process Federal Stafford and Parent PLUS Loans through the Federal Direct Loan Program instead of the Federal Family Education Loan program (FFEL).

If you have student loans, this information is very important!

For more information, please contact the Clark State Financial Aid Office at 937/328-6034.

Why is Clark State moving to the Federal Direct Loan Program?

President Obama proposed that the Federal Direct Loan Program be mandatory for all schools, eliminating the FFEL Program. This legislation became law on March 30, 2010, and takes effect for the 2010-2011 academic year. In light of this legislation, the U.S. Department of Education has required all schools to participate in the Direct Loan Program.

What is the difference between the Federal Family Educational Loan (FFEL) Program and the Federal Direct Loan Program?

The major difference between the FFEL and the Federal Direct Loan Program is the source of funding. Students and schools will receive loan disbursements directly from the U.S. government instead of a bank or credit union. Other changes include:

Application Process

• No loan application
• Awarded based on intended enrollment status and indicated interest in student loans listed on FAFSA
• Student has the option of declining or reducing the loan amount

New Master Promissory Note (MPN)

• All students must complete a new MPN

New Entrance Counseling

• All students must complete an Entrance Counseling session

For more information, please contact the Clark State Financial Aid Office at 937/328-6034.

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