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

Be Sociable, Share!

Upcoming Events

Calendar

February 2017
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
January 29, 2017 January 30, 2017 January 31, 2017

ALC Blood Drive

ALC Blood Drive
February 1, 2017

JBS 3rd Quarter Midterm Ends

JBS 3rd Quarter Midterm Ends
February 2, 2017 February 3, 2017 February 4, 2017
February 5, 2017 February 6, 2017 February 7, 2017

Convocation: Rising Center

Convocation: Rising Center
February 8, 2017 February 9, 2017 February 10, 2017 February 11, 2017
February 12, 2017 February 13, 2017

Global Awareness Week

Global Awareness Week
February 14, 2017

Global Awareness Week

Global Awareness Week

Convocation: Martin Van Buren Bates

Convocation: Martin Van Buren Bates
February 15, 2017

Global Awareness Week

Global Awareness Week
February 16, 2017

Global Awareness Week

Global Awareness Week
February 17, 2017

Global Awareness Week

Global Awareness Week
February 18, 2017
February 19, 2017 February 20, 2017 February 21, 2017

Convocation: Dave & Whitney

Convocation: Dave & Whitney
February 22, 2017 February 23, 2017 February 24, 2017 February 25, 2017
February 26, 2017 February 27, 2017 February 28, 2017 March 1, 2017 March 2, 2017

Convocation: Graduates Celebration!

Convocation: Graduates Celebration!
March 3, 2017

ALC Midterm Grades Due

ALC Midterm Grades Due

JBS 3rd Quarter Grades Due

JBS 3rd Quarter Grades Due
March 4, 2017