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?


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:

7. How do I contact the Direct Loan Program?

Telephone: 1.800.848.0979

Upcoming Events


October 2015
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
September 27, 2015 September 28, 2015 September 29, 2015

ALC Blood Drive

Convocation: Entrepreneurship Seminar

September 30, 2015 October 1, 2015

Convocation: Breast Cancer Awareness

October 2, 2015 October 3, 2015
October 4, 2015 October 5, 2015

JBS 1st Quarter Grades Due

October 6, 2015 October 7, 2015

ALC Midterm Grades Due

JBS Science Fair

October 8, 2015 October 9, 2015

JBS Grandparent's Day

October 10, 2015

ALC Alumni Association Meeting

Appalachia Day Homecoming

October 11, 2015 October 12, 2015 October 13, 2015 October 14, 2015 October 15, 2015

ALC Fall Break (No Classes)

JBS Fall Break (No Classes)

October 16, 2015

ALC Fall Break (No Classes)

JBS Fall Break (No Classes)

October 17, 2015
October 18, 2015 October 19, 2015

Alcohol Awareness Week

October 20, 2015

Alcohol Awareness Week

Convocation: Substance/Alcohol Abuse Awareness

October 21, 2015

Alcohol Awareness Week

October 22, 2015

Alcohol Awareness Week

October 23, 2015

Alcohol Awareness Week

Fall Board Meeting

October 24, 2015

Fall Board Meeting

October 25, 2015 October 26, 2015 October 27, 2015 October 28, 2015 October 29, 2015

Convocation: Kunal Mehta

October 30, 2015 October 31, 2015