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

May 2016
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
April 24, 2016 April 25, 2016 April 26, 2016 April 27, 2016 April 28, 2016

JBS Senior Spotlight

April 29, 2016

ALC Last Day of Classes

JBS Academic/Athletic Awards

April 30, 2016
May 1, 2016 May 2, 2016

ALC Final Exams Week

May 3, 2016

ALC Final Exams Week

May 4, 2016

ALC Final Exams Week

JBS Final Exams

JBS Kindergarten/8th Grade Graduation

May 5, 2016

ALC Final Exams Week

JBS Final Exams

May 6, 2016

JBS Final Exams

JBS Baccalaureate/Commencement

May 7, 2016

ALC Baccalaureate/Commencement

May 8, 2016 May 9, 2016 May 10, 2016 May 11, 2016 May 12, 2016 May 13, 2016 May 14, 2016
May 15, 2016 May 16, 2016 May 17, 2016 May 18, 2016 May 19, 2016 May 20, 2016 May 21, 2016
May 22, 2016 May 23, 2016 May 24, 2016 May 25, 2016 May 26, 2016 May 27, 2016 May 28, 2016
May 29, 2016 May 30, 2016 May 31, 2016 June 1, 2016 June 2, 2016 June 3, 2016 June 4, 2016