Alice Lloyd College

FAQs About the Federal Direct Lending Program

1. Why is ALC changing to the Federal Direct Lending Program?

President Obama and the current administration in Washington voted and passed the H.R. 4872-Health Care and Education Affordability Reconciliation Act of 2010, requiring all federal student loans to be funded by USDE through Direct Lending beginning July 1, 2010.

2. Do I have to complete another Master Promissory Note (MPN) with the federal government even if I have signed one before with a bank or other lender?

Yes, you must sign a new Direct MPN, because the federal government will now be your new lender. This should be the last MPN you have to sign as long as you attend ALC.

3. How and when do I complete a Direct Loan MPN?

If you plan to receive a Direct Loan, you need to complete a Direct Loan MPN as soon as possible. By completing the MPN now you will avoid possible delays in receiving your student loan funds. You can complete the MPN here.

4. If I have already completed a Direct Loan Master Promissory Note for another school, do I have to complete one for ALC?

Yes.

5. When I change from bank student loans to the Federal Direct Loan Program, will my earlier loans go into repayment?

No, as long as you remain enrolled at least half-time.   

6. Can I consolidate my Direct Loans and my bank loans?

Previous loans will not go into repayment as long as you remain enrolled at least half-time without a six-month break. When you do start repayment, you have a choice to either make payments to your previous lenders and the Federal Direct Loan Program or to consolidate your loans with the lender or the federal government. Currently, most lenders have stopped consolidating loans, so most consolidations are with the government. The benefits of consolidation depend on interest rates at the time of consolidation. Federal consolidation information: http://www.loanconsolidation.ed.gov/.

7. How do I contact the Direct Loan Program?

Telephone: 1.800.848.0979
Website: www.direct.ed.gov

Upcoming Events

Calendar

February 2015
S M T W T F S
25

Women's Basketball @ IU East

Men's Basketball @ Indiana University East

26 27

Blood Drive

Convocation: Blood Drive - Community Service

28 29 30

JBS 3rd Quarter Midterm Ends

Women's Basketball vs Cincinnati Christian

Men's Basketball vs Cincinnati Christian University

31
1 2 3

Convocation: Highlands Center For Autism (HCA)

Women's Basketball @ Berea

4 5 6 7

Women's Basketball vs Asbury

Men's Basketball vs Asbury University

8 9 10

Men's Basketball @ Cincinnati Christian University

Women's Basketball @ Cincinnati Christian

11 12 13 14

Men's Basketball vs Brescia University

Women's Basketball vs Brescia University

15 16

Global Awareness Week

17

Global Awareness Week

Baseball @ Hiwassee College

Men's Basketball @ Berea College

Women's Basketball @ Midway

18

Global Awareness Week

19

Global Awareness Week

Women's Basketball vs Berea

20

Global Awareness Week

21

Women's Basketball @ Asbury

Men's Basketball @ Asbury University

22 23 24

Convocation: Dr. Patrick Greene

25 26

Convocation: Dr. Rhonda Smith-Daugherty - Wings for Victory: Women Aviators and World War II

27

Midterm Grades Due

28